Legal considerations of going public and obtaining a listing on the Malta stock exchange

Abstract

This thesis seeks to analyse the legal aspects governing a company's offering of securities to the public, with a view to obtaining a listing on the Malta Stock Exchange. The main purpose of this study is to examine from a legal perspective the various possibilities offered by the Malta Stock Exchange to a company seeking such a listing. Chapter 1 seeks to put the whole thesis into a proper local perspective. A public offering and listing of securities entails inter alia a number of significant changes in the structure and management of a company, more so upon a relatively small or medium-sized one. Hence, in the first place, the size and the inherent characteristics of a majority of Maltese firms and companies are examined. Subsequently, Chapter 2 briefly analyses the various methods of financing companies. Raising capital from the public must be looked at in the light of corporate finance generally. Indeed, other routes of finance could better suit the particular company in question. Chapter 3 aims at a number of fundamental issues relating to the offering of securities to the public. The different alternatives faced by a company in the listing of a variety of corporate securities are given particular importance. This thesis seeks to highlight that a company seeking finance from the public, through the structure of the Borza, has a multitude of options to choose from. All depends on the respective needs of the specific company. In its tum, Chapter 4 deals specifically with some legal pre-conditions for the issue of such securities and with the detailed Listing Requirements found in the Bye-Laws of the Malta Stock Exchange Act. Finally, Chapter 5 highlights some legalamendments and incentives aimed at spurring an increase in the number of companies seeking a listing on the Malta Stock Exchange. I have taken all reasonable care to state, what I believe to be, the law as at 31 st March 1998.