The process for financial instruments being admitted to any of the recognised lists of the Malta Stock Exchange starts with a prospective Issuer seeking "Admissibility to Listing" from the Listing Authority, [MFSA]. Granting of "admissibility" means that the Listing Authority has approved the Prospectus for issue and the Issuer may seek admission to any of the Exchange's recognised lists.

It would be opportune to set up a preliminary meeting between the relevant parties and the Exchange before the formal application is made so as to clarify any operational matters and to ensure the smooth running of the whole process in the shortest possible time.

The role of the Sponsor

In order to be able to apply for Admissibility from the Listing Authority, the first step is to appoint a Sponsor. Sponsors must be in possession of at least a Category II licence in terms of the Investment Services Act (Chapter 370 of the Laws of Malta).

The role of the Sponsor is to guide the prospective Issuer through the whole listing and admission process, to co-ordinate processes of all the advisors as well as to act as liaison with the Listing Authority and the Exchange to generally advise the prospective Issuer on all related matters including those issues related to the secondary market. The Sponsor also assumes responsibility for signing and lodging the application and supporting documents with the Exchange

Conditions for admissibility

As would be expected, there are a number of conditions which would need to be met by prospective Issuers of the financial instruments as outlined in the Listing Rules issued by the Listing Authority and may be found on the MFSA website – www.mfsa.com.mt/pages/viewcontent.aspx?id=267. The basic conditions to be fulfilled by an Applicant for admission are:

  • Application for admission must be submitted at the same time as application for admissibility is made to the Listing Authority
  • Financial instruments for which admission is sought must be freely transferable
  • The Exchange may require the Applicant to enter into an Admission Agreement
  • The application must relate only to the financial instruments for which admission is being sought
  • The application must relate to all the financial instruments of the class for which admission is being sought

The application must be signed by the Sponsor and the Directors of the Applicant and must be submitted by the Sponsor together with the following supporting documents:

  • A copy of the Offering Memorandum approved/to be approved by the Listing Authority
  • Certified copies of the Board Resolutions authorizing the issue of the financial instruments for which application is being made and also those authorizing the issue of the Offering Memorandum
  • A copy of any notice of meeting as may be referred to in the Offering Memorandum

The current maximum timeframe for approval of a prospectus by the Listing Authority is 20 working days from submission of final documents. However, this approval procedure is an iterative process before the final documents are submitted and which may vary in length depending on many factors, including the nature of the business of the Issuer and the nature of the financial instrument to be listed.

Once the Listing Authority has authorized the financial instruments as admissible to Listing, they would be eligible for admission to one of the recognised lists of the Exchange. The admissibility and admission processes are usually concurrent and do not involve duplication of submissions or vetting of documentation. Requirements for Admission to the Malta Stock Exchange are found in Chapter 6 of the MSE bye-laws – these may be found on the MSE website www.borzamalta.com.mt.

Disclosure Requirements

Once a financial instrument is granted admission, the Issuer must ensure compliance with the continuing obligations and disclosure standards as laid down in the Listing Rules and other relevant rules. The Issuer must also appoint a Compliance Officer who shall be responsible to ensure compliance with all relevant rules

Company Announcements:

  • Issued in English or Maltese in accordance with the Listing Rules and Prevention of Financial Markets Abuse (Disclosure and Notification) Regulations, 2005
  • Disseminated through the Exchange's Dissemination System
  • May be issued at any time during the Exchange's business hours
  • The Exchange does not have responsibility for the contents of any Company Announced forwarded to it for dissemination
  • The Exchange will report non-compliance with disclosure requirements to the relevant competent authority

For further information regarding admission to any of Malta Stock Exchange plc's recognised lists, please refer to:

  • Financial Markets Act (Cap. 345 of the Laws of Malta) (www.gov.mt)
  • Listing Rules (www.mfsa.com.mt)
  • Bye-laws of Malta Stock Exchange plc (www.borzamalta.com.mt)
  • Prevention of Financial Markets Abuse (Disclosure and Notification) Regulations, 2005 (www..gov.mt)
  • Exchange Notice 1 - Fees & Other Charges (www.borzamalta.com.mt).

Issued by:

Malta Stock Exchange plc
Garrison Chapel
Castille Place
Valletta, VLT 1063

Tel: 00356 21244051
Borza@borzamalta.com.mt

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.