Listing a Company in the Stock Exchange in Germany
Listing a Company in the Stock Exchange in GermanyUpdated on Monday 14th September 2015
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The Frankfurt Stock Exchange in Germany
The Frankfurt Stock Exchange is among the largest stock exchanges in the world and accounts for over 90% of the revenue of all stock exchanges in Germany, but it also has a large quota of the European market. The Stock Exchange in Frankfurt is home to more than 250 international trading companies. The Frankfurt Stock Exchange has its own electronic trading platform called Xetra which is used for electronic trading by all foreign and German companies listed on it. One of the major benefits of the German Stock Exchange is that all shares are free trading, no restrictions being imposed.
The segments of the German Stock Exchange
The Frankfurt Stock Exchange has 4 tiers called segments. These are:
- - the Quotation Board, for dual listings;
- - the Entry Standard segment,
- - the General Standard segment,
- - the Prime Standard segment.
While the Quotation Board and the Entry Standard segment belong to the Regulated Unofficial Market, the General Standard and the Prime Standard segments belong to the EU Regulated Market. The Entry Standard segment has the least severe reporting requirements, while the Prime Standard segment has the most rigorous ones. Most German companies apply for being listed on the Entry Standard segment until they qualify for the General or Prime Standard segment.
You can contact our German lawyers for details about listing requirements on all Stock Exchange segments.
Requirements for General Standard segment listing on the German Stock Exchange
In order to list a company on the German Stock Exchange, there are few requirements that must be met for the issuer to be listed on the General Standard segment. These requirements are:
- - the German or foreign company must have been registered at least 3 years before listing,
- - minimum amount of money to be listed is 1.25 million euros,
- - the company must have at least 30 shareholders,
- - the minimum equity capital is 1.25 million euros,
- - the minimum free float is 25%,
- - the nominal issuing volume must be of at least 10,000 shares,
- - the company must submit an EU prospectus underwritten by a German bank,
- - the company must submit 3 years audited financial statements.
Listing regulations are subject to other requirements, which is why it is best to ask for the advice of our law firm in Germany. The time period for a company to be listed on the Stock Exchange in Germany ranges between 28 and 32 weeks.