Analysis of the legal admissibility requirements to listing a company’s shares on the Malta Stock Exchange, contrasted with european and foreign law

Abstract

This Term Paper on a Legal Subject examines the listing requirements, set out by the Listing Authority, which must be adhered to by the corporation applying for admission to listing of Equity Securities for the first time. This legal analysis scrutinises the Listing Rules that are relevant to having an Initial Public Offering admitted to trading. This study on the process for admission to listing in Malta is categorised into four sections. Firstly, this Term Paper evaluates the role of the Listing Authority and its overall influence in the listing process. Secondly, the paper discusses the appointment of a Sponsor and its role as an intermediary between the applying firm and the Listing Authority. Thirdly, the paper assesses the requirements to listing as they contain the conditions that the applying company must adhere to. Fourthly, weight is given to the application process highlighting what is to be handed over to the Listing Authority for consideration. This paper also takes into consideration European and foreign jurisdictions. The main influence of Maltese Company law is derived from the United Kingdom; hence this Term Paper studies the London Stock Exchange regulations. One of the top financial markets in Europe is the Frankfurt Stock Exchange, so it is interesting to discuss its provisions that led to its success. The New York Stock Exchange, which is the leading Stock Exchange, is also evaluated in this paper. Lastly, the Cyprus Stock Exchange is an important study due to its similarities in size and location with the Malta Stock Exchange. An interview is also conducted with an entrepreneur that led his firm through the listing process, and a regulator within the Malta Financial Services Authority. The aim is to understand what the process is like from persons who have had hands on experience with the listing process.