Bermuda Stock Exchange

Most stock exchanges impose very tight regulations to ensure trading security and market capitalization. While it is the right thing to do, these markets inadvertently alienate new market players who want to jump in and build their businesses. Small and Medium-sized Enterprises (SMEs) are the main backbone of the economy, but excessive regulations hinder their effort to raise sustainable fund and grow their businesses.

Bermuda Stock Exchange (BSX) realizes this problem and creates Mezzanine Market that caters to SMEs and sophisticated “Qualified Investors”. BSX defines Qualified Investor as “an investor who has truthfully completed an investor suitability declaration in the form prescribed by the Exchange from time to time or in such other form as the Exchange may approve and either; (1) whose investment is not less than $100,000; or (2) who otherwise meets one of the suitability tests set out in the declaration” (Source: BSX) This type of investor invests aggressively and are more resilient to risks. Mezzanine market was designed to match qualified investors with SMEs that want to generate market exposure and raise sustainable capital. To list on this platform, a company does not have to have a minimum track record, market capitalization, free float or profitability, and thus creates a perfect market for both SMEs and investors. Once listed, the company gains exposure and prestige of being a public company without having to conduct an IPO. In short, the Mezzanine Market provides a backing for listed private equity.

 

Mezzanine Market

Mezzanine Market is designed to prepare private company before they properly do the full retail IPO. This is the best way to go public because by being on this market, companies can learn all the necessary preparation for IPO hands-on. Companies listed on Mezzanine Market are subject to listing regulations so by the time they fulfill all the minimum requirements for IPO, they will already know all the ins-and-outs of the market. This market also gives the chance to SMEs to grow their market and business by being listed companies. They get to build a public profile in a more conducive market environment that encourages growth.

Going public without IPO

Listing Requirements

All companies who want to be listed on BSX must be sponsored by one of the BSX’s Trading Members. The sponsor will guide the way through the process and submit the application on behalf of the company. The costs involved in the process are:

  • BSX listing fees
  • Sponsorship fees
  • Full prospectus

Financial Products

Total Capital Solutions Ltd has strong relations with various Financial Institutions and can help companies acquire letters of credit, bank guarantees, proof of funds and performance bonds.

Credit Facility

A Credit Facility is a flexible financing structure in which GPG commits to purchasing shares of common stock directly from a company, at prevailing market prices, over a multi-year period - contact us for more information.

Prospectus Preparation

Our legal associate can prepare Prospectus both in English and German and handle the BaFin or FSA approval process.