The Frankfurt Stock Exchange Capital-In Requirement: FSE Open Market Listings

The Frankfurt Stock Exchange Capital-In Requirement: FSE Open Market Listings (HAS CHANGED FEB 14th 2011)

In order to list on the Frankfurt Stock Exchange open market a company needs to have the appropriate amount of invested in Capital or shareholder equity. This is call the Capital –In. Frankfurt’s requirement explicitly demands that companies applying for admission onto the stock exchange have 500,000 euro’s invested in capital or shareholder equity.

What is invested in Capital?

Invested in capital is money that was paid into the corporation for shares. Therefore, the shares issued to date when the company applies to list onto the Frankfurt stock exchange must have at least 500,000 euro’s in value with the funds having been made in cash-consideration. (Real Money subscriptions)

What is it not?

–          Debt – unless it is a third party valuation supported debt document like a Promissory Note

–          Asset Value (Unless paid for from capital in or a promissory note)

–          Invested in Capital into a past asset (Only if it was purchased currently, in the last two months of which an auditor can verify)

–          Value in Shares (Asset- but I separate this because people often ask if shares count, they don’t, unless it is to purchase the entire asset as capital in)

–          Revenue

How to reflect the capital-in:

–          In an opening balance sheet for the company

–          In the companies financials

–          At the share registrar as paid for shares

–          (no longer applicable) With a Lawyers letter if the funds are in escrow on behalf of the company at that exact time

–          An auditors letter who has reviewed the financials and the banking information and can state the capital-in to be 500,000 euro shareholder equity

The required documentation at the time of listing is either the Lawyers letter or the Auditors Letter. However, often registrars will ask for further due diligence unrelated to the exchange’s requirement as one of the many internal self-managed gate keepers one would find in an open market environment.

If you have 500,000 euro’s capital-in or shareholder equity in your firm, and you would like to go public on the Frankfurt Stock Exchange, you should contact FSE Listings is one of the leading listing agents in the world specializing in listing foreign companies onto the Frankfurt Stock Exchange in 3-6 weeks. Frankfurt Stock Exchange Listings (FSE Listings) is also well known for their ability to successfully run roadshows and provide equity lines of credit and financing options to their clients. As a creative full-service listing agency with licensed broker dealer partners with the EU and abroad, you should consider working with FSE Listings Inc before working with anyone else.

Contact today with your qualified company. If you are in the process of building a Frankfurt Listed company, read through the website as there are many useful insights within the articles.

Contact us with your information!

Please include:

  • Company Name
  • Contact Name
  • Contact Number
  • Contact Email
  • Amount of Capital invested to date
  • Amount of Capital required
  • Reasons for wanting to list
  • Description of Business
  • Website if available

Contact Robert Russell or Mark Bragg today!