The Channel Islands Stock Exchange has continued to grow throughout the recession.
Last year, 443 new securities joined the Channel Islands Stock Exchange (CISX), and trading volumes were in excess of 83 million. Tamara Menteshvili, chief executive of the CISX, says that such volumes are ‘a tremendous achievement, particularly during the challenging economic environment’.
The CISX appeals to a wide spread of companies and is internationally recognised by the US Securities and Exchange Commission, the FSA and HMRC, among others. In terms of sectors, Menteshvili says there has been considerable interest in energy and gold.
As for IPOs, the highlight for the CISX was the listing of Max Property Group (which also trades on the Alternative Investment Market), a Jersey-incorporated property investment company. It was admitted in May, with the £220 million raised constituting the largest IPO in Europe at the time. The listing had the backing of stellar New York hedge fund Och-Ziff, which invested £35 million at the offer price.
Another source of activity came from companies having to restructure, such as mining concern El Oro and Exploration Company which delisted from AIM in the first half of 2009.
Menteshvili claims that ‘the benefits of listing on the CISX continue to contribute to the exchange’s growth as companies like El Oro recognise the high standards of service’.
The major advantage of the CISX is the cost of listing, which is far smaller than that of many other stock exchanges.
For example, the listing fee is £3,300 and there is an annual fee of £1,650 for the primary listing of closed-ended investment companies.
Menteshvili explains, ‘The CISX doesn’t operate a pricing system based on the market cap of a company as many other exchanges do. Instead, our prices are based on product type. Likewise, trading is based on numbers of transactions rather than on size of transaction.’
Established in 1998 and with a total market capitalisation in excess of US$50 billion, the CISX comprises more than 3,500 securities, although only 50 companies are actively traded. Their reasons for listing are those you would expect of any smaller quoted company, with many looking for additional sources of liquidity and to increase distribution.
Menteshvili says the CISX Market Authority takes a pragmatic approach and offers a rapid application turnaround. Ease of listing has attracted over 200 issuers from 25 countries to the CISX.
She adds, ‘Although possessing many unique qualities and certainly having some distinct advantages over other exchanges in the same time zone, the CISX is a stock exchange like any other insofar as setting standards of public disclosure of information for the securities it lists and regulating the marketplace.’
For more information, contact Tamara Menteshvili, chief executive officer, Channel Islands Stock Exchange,
Tel: 01481 713831 (Guernsey)
01481 714856 (Jersey)