WHAT ESM COMPANIES are SAYing
"97% of our products are exported overseas, so we are a truly internationally focused company. Having an ISE listing has enhanced our visibility with investors and customers"
kevin barry,ceo of mincon
"The ESM allowed us to get Euro quotation and this helped us attract euro-based private and institutional investors from Ireland and overseas"
ceo of falcon oil and gas, philip O'quigley
Is the ESM right for my company?
An ESM company needs to have a minimum market capitalisation of €5m. Unlike the Main Securities Market (MSM), a three year trading record is not required and no minimum level of shares must be made available to the public.
Benefits of the ESM for your company
- a market tailored for growth companies
- euro quotation – attractive to Eurozone investors
- a liquid market for your shares
- dual admission to other markets enabling a flexible investor strategy
- enhanced profile with stakeholders
- ability to fund growth organically and by acquisition
Preparing for admission to the ESM
You are likely to require additional skills, resources and investment in systems to take your company to the market. Pre-admission work is vital and will ensure that your company and your directors are ready to meet market requirements and investor expectations.
Your pre-admission checklist
- a compelling, robust business plan
- clear and transparent legal and taxation structures
- strong management team
- appropriate board structure and board members
- well-developed internal control and financial reporting systems
- a tailored investor relations strategy
- potential advisors met and identified
The admission process
An admission document is prepared prior to admission to the ESM. Your ESM advisor oversees its preparation and it is published and filed with the ISE.
What is an admission document?
Your admission document provides information for investors on your company's story - how your company has developed and what your plans for the future are. Key areas would include your business strategy, history, financial statements, directors and management.
How long does it take?
If you have prepared well, the admission process takes about 6 months and includes:
- preparation of the company and its directors for transition to quoted company status
- due diligence by lawyers and accountants, including preparation of documents for admission
- marketing of the shares by the company and its ESM advisor and broker
- completion of the issue, receipt of monies, and commencement of trading in the shares
An indicative admission timetable
|3 - 6 months to IPO|
- Appoint and instruct advisors
- Agree timetable
- Commence due diligence process (legal and financial)
- Commence drafting of the admission document
- Establish share option scheme (if applicable)
|1 - 3 months to IPO|
- Commence legal and financial due diligence reports
- Complete drafting of the admission document
- Develop and refine your company's story
- Draft analyst research report
- Prepare investor presentations for roadshow
|1 month to IPO|
- Commence roadshow and bookbuild for the shares
|1 week to IPO|
- Submit formal application for admission to the ESM
- Finalise share pricing and allocation of shares
- ISE admits shares to trading on the ESM
Role of advisors
Advisors are key to your successful admission process.
|ESM Advisor||Assists in co-ordinating and guiding you through the admission process. Your ESM advisor also assists in preparing your admission document. An ESM company must appoint an ESM advisor prior to admission and retain one while quoted on the ESM. ESM advisors are vetted by us and included on our ESM advisor directory (59 KB). |
|Broker||Prepares for investor roadshow, sources investors for the IPO and manages marketing, distribution, allocation and pricing of the shares. Your ESM advisor and broker are often the same firm. |
Completes all legal aspects of the admission including legal due diligence, drafting and verification of the admission document
|Accountants||Completes all financial and taxation aspects of the admission including financial due diligence, working capital requirements and drafting of the financial sections of your admission document|
|Registrar||Records share transactions and shareholder register(s)|
|PR||Develops PR strategy to include media and investor relations both before and after your admission to the ESM|
Life on the ESM
You will want your company to achieve a share price that reflects your company's value, complies with ESM Rules and meets the expectations of investors. Life on the ESM involves:
|Disclosing information to the market||Publishing annual and half yearly results, trading updates and price sensitive information|
|Managing investor relations||Key executives committed to providing timely, effective communication with shareholders and potential investors|
|Monitoring investor trends||Utilising your share register to promote your business and attract investors|
|Meeting corporate governance standards|
Adhering to expected corporate governance standards
|Restricting share dealings||Restricting all directors and some employees from trading your shares at certain times|
|Admission fee (once off)||€4,000||3 days before admission|
on admission and
each anniversary date
Rules and forms for ESM companies
List of ESM companies
Need more INFORMATION?
We are launching a structured support programme in January 2015 to equip potential IPO companies with crucial skills in capital raising, investor relations and business management.
Are you more suited to the Main Securities Market (MSM)? MSM companies tend to be larger, more mature companies and have additional regulation requirements.