Irish companies will be able to gain dual access to the Irish Stock Exchange’s development market and in the United States on electronic exchange Nasdaq OMX under a deal announced today at Dublin’s web summit.
Officials from both exchanges hope the measure will attract technology and biotechnology firms to consider raising funds in the market.
Bruce Aust, executive vice-president of the global corporate client group at Nasdaq OMX, said Ireland had a "deservedly strong reputation" in the technology sector and believes that the double listing will be a "compelling proposition" to Irish companies in the industry.
“Quotations on both sides of the Atlantic will enable Irish companies to have a high degree of visibility with international investors, particularly global institutions, and re-enforces the connection which already exists between Ireland and the US,” he said.
Market cap
A minimum market capitalisation of €5 million is currently required for companies to list on ESM, though a spokeswoman for the Irish Stock Exchange said the market cap for first-time listings would typically be between €15 million and €20 million.
For companies listing on the Nasdaq, the minimum market value of publicly held shares must be $5 million. However, companies with a lower market capitalisation can still qualify for listing if other sector-specific criteria are fulfilled.
At present an ESM listing costs €4,000 per annum. Mr Aust said annual fees for listing a company on the Nasdaq vary between “$30,000 and $100,000”. Entry fees, based on the number of shares outstanding, must also be paid and start at $50,000.
Mr Aust said that the entire dual listing process would take anywhere from three to six months.
Companies will also be required to adhere to the regulatory environments of both jurisdictions. For Irish companies this would mean being compliant with all applicable regulations set out by the US Securities and Exchange Commission, though this is already the norm for many companies in the sector which are focused on the US market for sales and/or investment.
A spokesman from Nasdaq OMX said that “the listing regime on ISE’s ESM market is aligned with US SEC requirements. This in turn makes it easier and more cost-effective for ESM-listed companies to pursue an IPO on both ESM and Nasdaq and raise capital on both sides of the Atlantic,” he said.
The announcement comes after the Government exempted ESM-listed companies from stamp duty.
