Archive for April, 2010

Friday, April 23, 2010 @ 01:04 PM
posted by admin

Angola Entrepreneurs Should Look to Frankfurt Stock Exchange

Economy, commerce, and investments are the pivotal points of the Angola forward steps, with the new found stability of the South-Western African nation. In recent months, as a company who’s sole purpose is to assist African companies to list on the Frankfurt Stock Exchange, FSEListings.com and the FSE Listings Consortium out of Johannesburg has been involved with various mineral and infrastructure projects, with a special interest in Angola assets. From Guano, Iron Ore, Oil, and Diamonds the resources are plentiful.

Versus building a company aimed at foreign investment that takes the profits abroad and leaves little behind, FSE Listings Consortium has been focusing on building Frankfurt Listed companies owned by African’s who use the public vehicles to finance ventures within Africa. The inflow of jobs, operations, and overall development from this private/public offering in foreign markets is what the African countries need, and someone has to stand out in this market to achieve this.

A common complaint of African countries like Angola is that technology and decision making power seldom transfer into the Country. The model built by the FSE Listings Consortium has been developed specifically to foster the decision making power and knowledge within Africa, whereby investment and technology come from abroad to achieve the public company goals. Whether it is infrastructure, internet, or research and development, the primary benefit ends up in the hands of the African companies Founders and Owners with a distinct responsibility to give transparent and well managed outcomes to their investors.

Angola which has a territory of 1.25 million sq km and a population of 16 million is vast in opportunities worthy of the public markets in Europe to leverage one of the poorest nations. Angola is a heavily Oil dependent country which also provides leverage for assets within the exploration and extraction business, but has also give way to new endeavours that are less Oil dependent.

Listing Angola Oil projects as Angolan Public companies on the Frankfurt Stock Exchange would be highly supported by investors internationally with it being the largest supplier of Oil to China and 7th to the USA. Roughly 2 million barrels of Oil daily, Angola can boast itself as one of the fastest growing economies in Africa.

Entry of Angolan companies, such as Sonangol Petrol Stations into Portugal, show the expansion as possible for this African nations expansion into international markets.

The Frankfurt Stock Exchange provides a door-way and mechanism for such opportunities of international expansion and investment for Angola.

The story behind Iron Ore exploration within Angola is also promising as the ever increasing demand of Asia continues to hold the marketplace demand in high production. Iron ore is one of the minerals that Angola has slated for foreign investment.

Entrepreneurs within the Angola coffee business have also raised eyebrows as to knew economic endeavours, revealing that the country is able to expand on minimal investment criteria. One Million euro is capable of creating new industries for the most part in African nations, especially around agricultural products that can target Europe as a major market. The European market and Asian market as consumers and importers of Angolan produced goods also makes it appealing to float the companies and assets on a market within their jurisdiction such as the Frankfurt Stock Exchange.

Germany is Europe’s largest economy and the world’s third, after USA and Japan, regarding GDP. The country is a world leader in a number of exports, and has a domain of almost 35% over merchandise transportation by sea concentrate in Ruhr, the biggest industrial complex in Europe. Frankfurt is its financial capital where the stock exchange is located, the biggest and most important stock exchange in Europe

Trade exchange between Angola and Germany has intensified during the last years mainly due to the improvement in relations between both countries. In 2006 bilateral trade registered 260 million euros, double that of 2005.

Contact info@fselistings.com if you are looking to list your Angola Company on the Frankfurt Stock Exchange or take your Angola Company public. If you have assets within an African nation that you are interested in listing and attracting investment for, please contact us as well with a detailed summary of your business.

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Friday, April 23, 2010 @ 12:04 PM
posted by admin

Listing in a foreign stock exchange can give an immigration advantage in addition to a capital advantage to Founders and Staff.

Often when a company such as a Chinese company lists on the NASDAQ or Frankfurt Stock Exchange, the parent company is required to set-up a holding or subsidiary company in the new market or a holding company that holds the domestic business as an operating entity.

Let’s take for example a South African Diamond mining company incorporates a UK company of which it meets the 250,000 euro in requirement for listing on the Frankfurt Stock Exchange. The company then lists on the Frankfurt Stock Exchange as a Diamond Mining company. One of the essential components of this company is to raise capital and invest in partnerships within the European Union to successfully operate the Diamond Mine. With the requirement of a person within the EU to co-ordinate the investment strategy of the company, it is quite likely that the principals and key staff can apply as employees who are residence of South Africa for Work VISAs within the UK.

Therefore, going public inside of the European Market, such as the Frankfurt Stock Exchange, doesn’t only allow for the South African Diamond Mining company access to foreign investment, liquidity, and a stable Euro currency, but it also gives the staff and principals the luxury of being able to apply to work from the UK or EU countries during the timeframe that they are raising capital and running the company.

In addition, the experience in running a company on a public market is a rare resource, thus, those foreign directors are a commodity on their own. The more sophisticated markets such as TSX, NASDAQ, Frankfurt Stock Exchange (FSE), AIM, ASX, HSE, etc, would gladly accept such Directors within their markets and appreciate the career experience. In essence, after working as a Director or Officer of a public company, it is relatively easy to apply in this capacity into other countries for jobs that wouldn’t otherwise be fulfilled by other persons because your experience is unique.

Most markets would jump at the chance of accepting serial entrepreneurs and directors of public companies who are educated and refined in specialty industries. Going public within these foreign markets and applying for immigration work and residency status is definitely a plus for foreign countries.

Citizens that would benefit from an immigration perspective in building a listed company in the US, UK, or EU markets who require VISAs should contact us at info@fselistings.com, especially if you are a successful entrepreneur from one of the following countries looking to raise capital and go public:

  • Afghanistan
  • Albania
  • Algeria
  • Angola
  • Armenia
  • Azerbaijan
  • Bahrain
  • Bangladesh
  • Belarus (see also White Russia)
  • Belize
  • Benin
  • Bhutan
  • Bolivia
  • Bosnia and Herzegovina
  • Botswana
  • British Virgin Islands
  • Burkina Faso
  • Burundi
  • Cambodia
  • Cameroon
  • Cape Verde
  • Cayman Islands
  • Central African Republic
  • Chad
  • China (People’s Republic)****
  • Colombia
  • Comoros
  • Congo (Democratic Republic of the Congo)
  • Congo (Republic of the Congo)
  • Côte d’Ivoire (Ivory Coast)
  • Cuba
  • Djibouti
  • Dominica
  • Dominican Republic
  • Ecuador
  • Egypt
  • Equatorial Guinea
  • Eritrea
  • Ethiopia
  • Falkland Islands
  • Fiji
  • Gabon
  • Gambia
  • Georgia
  • Ghana
  • Grenada
  • Guinea
  • Guinea-Bissau
  • Guyana
  • Haiti
  • Hongkong**** see China (People’s Republic)
  • India
  • Indonesia
  • Iran
  • Iraq
  • Jamaica
  • Jordan
  • Kazakhstan
  • Kenya
  • Kiribati
  • Korea (Democratic People’s Republic)
  • Kosovo
  • Kuwait
  • Kyrgyzstan
  • Laos
  • Lebanon
  • Lesotho
  • Liberia
  • Libya
  • Madagascar
  • Malawi
  • Maldives
  • Mali
  • Marshall Islands
  • Mauritania
  • Micronesia
  • Midway Islands
  • Moldova
  • Mongolia
  • Montserrat
  • Morocco
  • Mozambique
  • Myanmar (Burma)
  • Namibia
  • Nauru
  • Nepal
  • Niger
  • Nigeria
  • Northern Mariana Islands (Federated States of Micronesia, Mariana Islands, Caroline Islands, Palau Islands)
  • Oman
  • Pakistan
  • Papua New Guinea
  • Peru
  • Philippines
  • Pitcairn
  • Qatar
  • Russia
  • Rwanda
  • Saint Helena and Dependencies
  • Saint Lucia
  • Saint Vincent and the Grenadines
  • Samoa
  • São Tomé and Principe
  • Saudi Arabia
  • Senegal
  • Sierra Leone
  • Solomon Islands
  • Somalia
  • South Africa
  • Sri Lanka
  • Sudan
  • Suriname
  • Swaziland
  • Syria
  • Taiwan
  • Tajikistan
  • Tanzania
  • Thailand
  • Timor-Leste (East Timor)
  • Togo
  • Tonga
  • Trinidad and Tobago
  • Trust Territory of the Pacific Islands
  • Tunisia
  • Turkey
  • Turkmenistan
  • Turks and Caicos Islands
  • Tuvalu
  • Uganda
  • Ukraine
  • United Arab Emirates
  • Uzbekistan
  • Vanuatu
  • Viet Nam
  • Western Samoa
  • White Russia (see also Belarus)
  • Yemen
  • Zambia
  • Zimbabwe

If you run a successful business in one of these Countries and are looking to raise additional capital, we can help you list on the Frankfurt Stock Exchange.

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Wednesday, April 14, 2010 @ 01:04 AM
posted by admin

Go Public In Foreign Markets And Raise Millions

South African companies are active participants in the global markets, including assets and corporations listed on the Frankfurt Stock Exchange (FSE), the London Stock Exchange Alternative Markets (AIM), Plus Markets, NASDAQ, Toronto Stock Exchange (TSX), and locally within the JSE and ALTX.

In general, the typical pattern of going public has been to list on an international market where there is a higher access to capital and liquid retail market for investors looking to purchase their stock in the open market. Once they have raised sufficient capital, a dual listing onto the local South African exchanges allows for local market negotiations and leverage, especially in financial sectors and mining.

Going public on a foreign exchange allows South African companies to:

Leverage their assets within a foreign currency with foreign investment

The company’s assets which are often valued in Rand are become a trading currency in shares in Euros, Pounds, or Dollars. International investors who are keen on investing in South Africa turn to the familiar currency because it has less risk when it comes time to trade the shares, as they sell the shares in the same currency they bought them in. The South African company benefits from the foreign currency exchange in today’s immediate terms when bringing in the investment in foreign currency for their operations.

Open the trading of their shares to a larger market of retail and institutional investors

There is no question that the USA, Germany, the UK, and Canada have large pools of investors looking for opportunities to leverage assets such as the ones in South Africa. Many successful mining and technology companies have incubated within the African investment climate, and this has not gone unnoticed. Trading on the local exchanges of the foreign investors makes it easier for the foreign investors who want to invest, who otherwise would not know how to trade the JSE or ALTX.  (In most cases, they would not be able to trade these exchanges via their brokerage houses.)

A quicker route to going public than local exchanges.

Possibly this is due to the company not meeting the listing requirements of the South African markets, but they qualify in other exchanges. Many development stage companies list quickly and easily oversees in the Small Business markets due to the keen nature of the listings departments overseas to increase small business investments. The strength of their local markets depend on a diversity of assets, companies, and investment communities to sustain the overall index. Therefore, some exchanges will be even favourable to floating South African mining companies for example, due to the proven track record, professional experience, and assets floating on their exchange.

International exposure of the South African business to open new markets, partnerships, and joint ventures

In addition to international listings, companies experience international press, exposure through news wires, marketing websites, and general exposure. The market attention drives interest in the retail market of shares being traded, the interest in the South African company itself, and can on occasion put companies on the radar of larger foreign companies looking for merger, acquisition, or joint venture opportunities. Becoming a player within these markets gives their investors the confidence to make a strategic move with the South African firm. It also allows for institutional investors to make strategic moves leverage the foreign assets in South Africa against their own currency, if the South African market looks to be heating up, it could attract a lot of investment.

Where Should South African Companies Start Their International Listing?

The Frankfurt Stock Exchange

A primary listing on the Frankfurt Exchange can be completed as fast as 3-6 weeks of which capital raising efforts can begin immediately. Today, with a total turnover of €5.2 trillion per year the Frankfurt Stock Exchange strengthens its position as the world’s 3rd largest trade-place for stocks and the world’s 2nd largest by market capitalization. The German Frankfurt Exchange has a primary market consisting of more than 100 million people, and has the fastest rate of growth and the highest income per head in the EU. European investors invest for the long term. And in most European countries there are major tax benefits for holding on to purchased stock for a certain amount of time as opposed to “dumping” it immediately into the market. The lack of investors that instantly sell a company’s stock allows for stability in stock price and opportunities for growth. Compared to the listing on other exchanges, such as the NASDAQ, OTC Bulletin Board, Canadian Venture Exchange (TSX) or the Alternative Investment Market (AIM) in London, Frankfurt stands out because of the ease of entry, (Audited financials are not required), fast process and low annual fees. Companies can typically raise from €2 million to €100 million plus on the Frankfurt Stock Exchange. The cost of listing is less than €100,000 and the main requirement is that the company has had over  €250,000 invested in capital. Due to the ease, cost effectiveness, and market liquidity, the Frankfurt Stock Exchange stands out in the current economic climate as a viable place for South African companies to go public. In addition, annual fees do not exceed €5,000 and you do not require one of the top five accounting and auditing firms typical of other lower board exchanges.

In addition, the Frankfurt Stock Exchange companies can dual list onto the US markets, Canadian, London, and other markets but one cannot dual list from these markets onto the Frankfurt. Therefore, if a South African company was going to start their international listing in Europe, it is best to start with the Frankfurt and then dual list into the other markets as a foreign company.

As the authors of this article

If you are looking at talking with a market professional for listing a company on foreign markets, contact the author of this article at info@fselistings.com. We help take companies public on the AIM, NASDAQ-OTC, Frankfurt (FSE), and Toronto (TSX) with a keen focus on capital availability upon going public.

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