‘Prospects’ is a new platform set up by the Malta Stock Exchange in line with its commitment to open up new capital market opportunities, create economies of scale and to afford businesses more competitiveness and sustainability.
‘Prospects’ will provide investors with a greater and better access to the capital market which would lead to more efficient utilisation of capital resources. Experience clearly shows that there is significant demand for IPOs, and there is, therefore, space for additional investment opportunities throughout Europe.
‘Prospects’ creates an opportunity for SMEs to access capital markets relatively easily and efficiently, and to benefit from the advantages which, so far, have not been available to SME’s, but were only accessible to large entities.
Through ‘Prospects’, SME’s will now be able to raise capital and financing by issuing bonds and new shares, or selling existing shares to a pool of investors and will not be necessarily restricted to their own family members or business partners.
‘Prospects’, thus offers a number of businesses growth opportunities which up till now have been simply out of reach. This new market has been designed specifically for SMEs and, therefore, reflects their particular needs and circumstances.
Benefits for SME’s include:
- Access to increase capital and financing, through the issue new equities and corporate bonds
- Admission to ‘Prospects’ will raise brand awareness amongst the public
- Admission to ‘Prospects’ can form part of a succession planning process
- SMEs will enjoy the benefits of good corporate governance and the enhanced efficiency and effectiveness which this brings along
- Admission to ‘Prospects’ may in the future open up the opportunity to a listing on a regulated market
- The company may secure capital at a competitive coupon rate, in the case of a bond issue, and under conditions more favourable to other, more traditional, methods of raising finance
- The admission of equity will create an opportunity for existing, or new, shareholders to exit the market efficiently in future
- No collateral is required to access finance on the capital market.