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We support and assist companies to list on the exchange and once listed, to maintain that listing. We project manage and lead the listing process on behalf of the client to ensure it is as seamless and pain free as possible. We guide and advise our listed clients in terms of the listing requirements and corporate governance.
The success of MERJ in developing and building capital markets in Seychelles whilst at the same time protecting systemic risk will be due to the dedication and professionalism of Sponsor Advisors, making them integral to the market. Each company applying to MERJ must appoint and retain a Sponsor Advisor to guide it through the admission process and its subsequent life as a public company.
MERJ sets strict criteria for becoming a Sponsor Advisor, in order to safeguard the integrity of the market, and to ensure that existing and prospective companies have access to the high-quality advice they deserve.
The Sponsor Advisor's primary responsibility and duty of care is owed to the Exchange and it must ensure that the admission of a company to MERJ and its conduct following admission do not impact adversely on the reputation or integrity of the Exchange. For a Sponsor Advisor, the reputation and integrity of the market are of paramount importance.
It is the Sponsor Advisor's role to assess the company, each of its directors and its potential advisers for suitability and reputation issues.
Traditionally, joining a public market was seen as the last stage of a company's evolution and a means of the owner-manager securing an exit. MERJ is different, in that it is a source of development capital, designed as a solution to the equity gap faced by smaller companies.
The ideal MERJ company is looking to come to MERJ for one or ideally several of the following reasons:
The fundamental question that a Sponsor Advisor will ask is whether the prospective MERJ company has a sustainable competitive advantage that can be further exploited to create shareholder value.
To a large extent, a company's ability to exploit profitably its competitive advantage will depend on its ability to control its destiny. In this regard, a Sponsor Advisor will look at:
The Sponsor Advisor must ensure that the prospective MERJ company has examined all the alternative sources of funding and has rejected them.
The Sponsor Advisor will also need to consider, in consultation with the broker, whether there is likely to be sufficient investor appetite for the company's shares to ensure a successful IPO, support for secondary fundraisings and an effective market in the stock.
The Sponsor Advisor will need to analyse and assess the structure and composition of the management team. A strong management team typically has the following characteristics:
In assessing the appropriateness of an applicant and its securities for MERJ, a Sponsor Advisor must satisfy the admission responsibilities, which include:
The Sponsor Advisor must make a declaration to the Exchange that:
The Sponsor Advisor:
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