Nominated Advisory
The CSE requires that a company seeking a listing on Emerging Companies Market (ECM) have a NOMAD, which the CSE itself must approve to carry out the functions.
A Nominated Adviser (NOMAD) is a firm which has been approved by the Cyprus Stock Exchange (CSE) as a nominated advisor and whose name has been placed on the register of nominated advisers published by the Cyprus Stock Exchange.
Its obligation is to shepherd a company onto the Emerging Companies Market (ECM) and manage the admission of new issues to ECM while also acts as the effective regulator.
The NOMAD performs this regulator role under license from the CSE as a consequence of this unique situation that arises largely because the ECM is an exchange regulated market. Therefore once listed on the Emerging Companies Market, the NOMAD regulates the company.
MEGA EQUITY’S ROLE AS A NOMINATED ADVISOR
We are licensed to provide Nominated Advisory (NOMAD) to companies in respect of their compliance with the rules and regulations of the Emerging Companies Market (E.C.M.) of the Cyprus Stock Exchange.
As Nominated Advisors we:
- Evaluate and present the issuing company to the Cyprus Stock Exchange ensuring that the listing requirements are fulfilled.
- Represent the issuer through its listing procedure.
- Monitor and assist the issuer according to the rules and regulations of the E.C.M in fulfilling their continuous obligations.
ADVANTAGES FROM OBTAINING A LISTING ON THE CSE
A vehicle for raising capital
The Stock Exchange provides the listed companies with an alternative means for raising the capital required, in order to finance their development and growth activities, reducing their reliance on the more conventional ways of raising capital.
The growth and development of the sphere of activities of listed companies
The predominant feature of the economy of Cyprus is the large number of small to medium sized family enterprises, some of which are very credible and promising. However, on average, such companies often have limited prospects of growth and development and they cannot benefit from economies of scale. Going public and obtaining a listing may offer a way out of these difficulties in the sense that the listing can provide the necessary funds to boost their growth potential.
Strengthening of the company
Local Companies are going to be exposed to fierce competition on a European and a global basis, following our joining the EC. In such an environment, there will be no safety nets. Companies will have to invest on a larger scale, making effective investment choices and striving hard for efficiency and improvement in their productivity, in order to achieve an equal status with their European counterparts.
Opportunity to invest abroad
Following the liberalization of interest rates and the removal of restrictions in capital flows, listed companies will be able to utilize the funds raised through the Cyprus Stock Exchange in order to invest abroad in countries where finance is difficult to obtain, but where prospects are promising.
Enhanced corporate image
Listed companies enjoy the privilege of attracting the lights of publicity, with all the positive connotations associated with this fact. Furthermore, obtaining a listing has a status factor associated with it, which often enables listed companies to obtain finance at better terms than a private company.
Greater Marketability
Investors who choose to invest in listed companies can liquidate their investments at any time, an advantage that cannot be enjoyed by those who invest their money in private companies.
A path to mergers and acquisitions
It is much easier for listed companies to proceed with a merger of an acquisition of either a company listed on Cyprus Stock Exchange or a foreign company, and enjoy the synergy from such an option.
Tax incentives
The tax treatment of foreign investors depends on the tax regime that each investor is bound with. In the case where a Double Taxation Avoidance Treaty occurs between Cyprus and investor’s country exists the Nominated Advisor will advise as per.