About Prospects

 

Prospects – a new tool to access capital markets

 

The development of Prospects is in line with the MSE’s commitment to open up new capital market opportunities, create economies of scale and to afford businesses more competitiveness and sustainability.

There is another, equally important, benefit; greater investor access to the capital market leads to more efficient utilisation of capital resources. Experience clearly shows that there is significant demand for IPOs, and there is, therefore, space for additional investment opportunities throughout Europe.

Prospects creates an opportunity for SMEs to access capital markets relatively easily and efficiently, and to benefit from the advantages which, so far, have only been available to much larger entities.

Small and medium-sized businesses will now be able to raise capital by issuing  bonds, issuing new shares, or selling existing shares to a pool of investors  far greater than their own family or business partners.

In a tangible and practical way, Prospects, therefore, offers many businesses growth opportunities which have hitherto been simply out of reach. This new market has been designed specifically for SMEs and, therefore, reflects their particular needs and circumstances.

Prospects’ key features: 

  • Compliant with Markets in Financial Instruments Directive (MiFID) which harmonises the regulation of investment services and Multilateral Trading Facilities (MTFs)
  • Admission granted by the MSE
  • A corporate advisor is required
  • A business plan is required
  • There is no minimum value for the IPO, though the MSE envisages IPOs of between €1 million and €5 million
  • Any number of shares may be floated - there is no minimum percentage
  • This product is not passportable within the EU (When approved by the MSE)
  • SMEs have full flexibility of issuing equities or corporate bonds

Prospects provides cost-effective access to capital – there is no need  for security or collateral, though investor and market confidence are required for success.

Entities considering Prospects require the services of a Corporate Advisor, both before and following an admission process. The involvement of a Corporate Advisor by the SME ensures that transparency and corporate governance efficiencies are achieved and retained, thus creating greater investor confidence.

Prospects will also help in succession planning - admitted equities may be traded on the secondary market, thereby un-locking value for existing shareholders.

"Prospects creates an opportunity for SMEs to access capital markets relatively easily and efficiently..."

"...offers many businesses growth opportunities which have hitherto been simply out of reach..."