Malta: PROSPECTS – ALTERNATIVE SOURCES OF FINANCE TO SMEs

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Malta: PROSPECTS – ALTERNATIVE SOURCES OF FINANCE TO SMEs

Author: ACT Advisory Services Limited

 

‘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:

  1. Access to increase capital and financing, through the issue new equities and corporate bonds

  2. Admission to ‘Prospects’ will raise brand awareness amongst the public

  3. Admission to ‘Prospects’ can form part of a succession planning process

  4. SMEs will enjoy the benefits of good corporate governance and the enhanced efficiency and effectiveness which this brings along

  5. Admission to ‘Prospects’ may in the future open up the opportunity to a listing on a regulated market

  6. 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

  7. The admission of equity will create an opportunity for existing, or new, shareholders to exit the market efficiently in future

  8. No collateral is required to access finance on the capital market.


How can we help?

ACT Prospects Limited, a company which forms part of the ACT group of companies has been approved by the Malta Stock Exchange to act as a Corporate Advisor on its ‘Prospects’ platform.

ACT is able to offer to a one stop shop to advise and assist SME’s in listing their bonds and shares and obtain new financing by means of ‘Prospects’.  We will be able to follow through the whole process and then assist in the various compliance requirements.  Through its in-house expertise, ACT also offers accountancy, tax, corporate, business advisory services and other subsequent ongoing compliance services so as to be able to adhere to the ‘Prospects’ rules. 

For further information, please contact the firm’s tax and corporate services partner Stephen Balzan on This email address is being protected from spambots. You need JavaScript enabled to view it.

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on This email address is being protected from spambots. You need JavaScript enabled to view it..

Disclaimer  

This article contains general information only and is not intended to address the circumstances of any particular individual or entity. ACT, by means of this article is not rendering any accounting, business, financial, investment, legal, tax, or other professional advice or service. This article is not a substitute for such professional advice, nor should it be used as a basis for any decision or action that may affect your finances or your business. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Before making any decisions or before taking any action that may affect your finances or your business, you should consult a qualified professional adviser. ACT shall not be responsible for any loss whatsoever sustained by any person who relies on this article.  

29th March 2017


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