Malta Stock Exchange: Listing Process

Thanks to its smaller  size, the MSE takes a fast, efficient and personalised approach to listing and encourages preliminary meetings before the formal application is made to ensure a smooth and successful process.

The process to admit financial  instruments to any of the MSE’s recognised lists starts with a prospective Issuer seeking ‘Admissibility to Listing’ from the listing authority, the Malta Financial Services Authority (MFSA). Granting of admissibility means the MFSA has approved the prospectus for issue and the Issuer may seek admission to any of the Exchange’s recognised lists, the Main (Official) List or the Alternative Companies List (ACL).

Appointing a Sponsor

To apply, a Sponsor must be appointed, who as a minimum must be in possession of a Category II licence in terms of the Investment Services Act. The role of the Sponsor is to guide the prospective Issuer through the entire admission and listing process and to act as liaison with the MFSA and the Exchange. The sponsor is also expected to advise the prospective Issuer on all relevant matters, including issues related to the secondary market. The sponsor also assumes responsibility for signing and submitting the application and supporting documents with the MSE.

Basic Conditions

A number of conditions need to be met by prospective Issuers of financial instruments,  as outlined in the Listing Rules issued by the listing authority, but the basic conditions are:

  • Financial instruments for which admission is sought must be freely transferable
  • The application must relate to, and apply for, the financial instruments for which admission is being sought

An Issuer may seek admission to:

  • The Main (Official) List: designed to cater for issuers with a proven three-year track record
  • The Alternative Companies List (ACL): no track record is required and entry requirements are less burdensome

Application for admission must be submitted at the same time as application for admissibility is made to the MFSA, and the Exchange may require the applicant to enter into an Admission Agreement.

Timeframe

Current maximum timeframe for approval of a prospectus by the MFSA is 20 working days from submission of final documents. The admissibility and admission processes are usually concurrent and do not involve duplication of submissions or vetting of documentation.

Trading Across Europe

Issuers that have been granted Admissibility to Listing can opt to have their instruments traded on the Malta Stock Exchange trading platform or have them traded anywhere within the EU. This is possible since both the Main and the Alternative Companies lists are Regulated Markets and enjoy full passporting rights within the EU.

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Collective Investment Schemes (CIS)

The listing rules issued by the MFSA set out the requirements for the admissibility to primary or secondary listing of units in both open- ended and close-ended Collective Investment Schemes. These may be incorporated in or outside of Malta. Continuing obligations are also applicable
to the different types of schemes.

Disclosure Requirements

Once a financial instrument is granted admission, the Issuer must ensure compliance with the  continuing  obligations and disclosure standards as laid down in the Listing Rules and other relevant rules. The Issuer must also appoint a Compliance Officer to ensure full compliance with all relevant rules.

Company Announcements:

  • May be issued in English in accordance with the Listing Rules and Prevention of Financial Markets Abuse (Disclosure and Notification) Regulations, 2005
  • Are disseminated through the Exchange’s Dissemination System and may be issued at any time during the Exchange’s business hours

The Exchange does not have responsibility for the contents of any Company Announced forwarded to it for dissemination, and the Exchange will report non- compliance with disclosure requirements to the relevant competent authority.

 

Disclosure requirements for all Schemes include information regarding:

  • Capital and management including NAVs, any suspension of calculation of NAVs, any change in the status of the Scheme for tax and other purposes
  • Rights of holders and rights between holders
  • Dividend distributions as applicable
  • Financial Information
  • Information regarding Directors
  • Related party transaction
  • Any Price Sensitive information

The detail of information required, and whether this needs to be made public or not or merely notified to the MFSA and/or the MSE, depends on the structure of the scheme, whether this is a primary or secondary listing and on the nature of the information as outlined in the Listing Rules.

 Download your copy of the Malta Stock Exchange Factsheet