Listing On LuxSE: An Effective Long Term Solution

The Luxembourg Stock Exchange (LSE) operates two separate markets: the Bourse de Luxembourg (Bourse), the regulated European market, and the Euro MTF (MTF), the multilateral trading platform.

With over 10,000 stock market introductions in 10 years, a growth rate of 35 percent since 2013 and a mass of securities representing more than 25 percent of the securities introduced to the LSE, the MTF no longer has to prove its economic health and stability.

These figures, however, provide an imperfect picture of the MTF and the opportunities it offers.

The MTF is an effective solution because it is based on a state-of-the-art trading infrastructure (UTP), and financial news service. The MTF is an international solution because it enjoys worldwide recognition. The MTF is a pragmatic solution because it offers reduced deadlines and listing costs. Finally, the MTF is a flexibl solution because it establishes a lighter reporting and disclosure framework.

Arguably, the MTF is the obvious solution to any company or investment fund wishing to introduce its securities on the stock market. However, the objective of this article is much wider and describes not only the advantages of the MTF, but also the listing process itself.

Indeed, the success of an IPO depends not only on the infrastructure of the target market, its functional specificities of the intermediaries involved in the listing process. The success of a listing also requires intensive upstream preparation. More precisely, it is a question of perfect and comprehensive understanding of stock market introduction.

In other words, once you have chosen the market you want to integrate, you have to determine how you get there. Which documents should you collect or draft? To which authority should the application file be submitted? What are the obligations imposed to entities listed on the MTF? What are the listing deadlines? These are only four of the many questions that arise when analysing the listing procedure.

The application phase

During the first step of the listing process, it will be necessary to address the application file. In order to meet the formal requirements imposed by the LSE, the file application must provide all information related to the issuer and its securities.

The LSE analyses the application file and notes that the file must contain a certain number of documents and that the prospectus, the key piece of the application file, must comply with a number of conditions.

Furthermore...