To List… Or Not to List?

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April 16, 2018
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May 14, 2018

To List… Or Not to List?

Publication 4. 2018

Want to get in on the action?

Want to join in on all the fun?

Want to take your company to the next level? Let’s delve in…


More and more companies are checking out the Dutch Caribbean Securities Exchange(“DCSX”) as a means to raise funding. Are you interested too but not sure how? Do you have questions and not sure where to start, who to ask? What are the requirements? What do you need to do? Is my company eligible? What type of company is legally allowed to assist me and where can I find such a company?  Is it expensive to list? I am sure that these and perhaps more similar questions are swirling around in your mind. Let me try and help with some of them or at least point you in the direction where you can get further help.


The Listing Process for stocks, bonds and funds were discussed at length at the DCSX sponsored conference held at the Central Bank’s auditorium on March 29, 2018. It was very insightful and I thought it would be a great idea to share with you, my valued readers, in the process.


You will first need a so-called Listing Advisor (“LAD”). Get in contact with a licensed one. A list is available on the DCSX’s website. The Listing Advisor knows how the process works (the requirements for each type of listing be it equity/stocks, bonds, funds or other types of financial instruments) and can provide you with all the information your company needs to start the process. They will not only provide advice on the documents that are needed but also help you in preparing some if not most of the documents. As you can imagine, there are a number of important pieces of information about the company and management that will need to be provided. But have no fear, this is no more than what would normally be required by the bank if you are to take out a loan.


The most important document that the listing advisor will help you to prepare is the Prospectus also known as the Information Memorandum. The Prospectus is like a business plan proposal that pretty much tells the public basic information about your company, why you are seeking the funding and what you plan to do with the money you raise. This is not unique or unusual, the document is a standard document that is prepared in many if not all other countries when a company is approaching the public for financing.


You will also need a Broker; some Listing Advisors are also Brokers. When the Listing Advisor successfully gets the go-ahead to list the bonds (or for that matter shares) for your company, it is now up to the Broker to assist you in getting the word out to the public that your bonds (shares) are attractive for them to buy. The Broker gives you access to the public; those who can afford to invest in your bond or shares of your company.


Important too is that your company’s financials need to be in order. While DCSX does not demand audited financial statements to be prepared for your company to list a bond or a stock, it is a MUST to have proper financial statements for your potential shareholders to assess. I would recommend that you get your financials audited. It might be a bit on the expensive side, but it may save you a lot of headache in the future.


There are few more components to the process, for example, you may need to get some form of approval from the Central Bank in the case of a bond of a certain value, but I think I have highlighted the essentials. The Listing Advisor and the Broker will be able to assist you in assessing your eligibility and the cost of listing as it differs depending on your company (which could be an existing company or a matured startup) and on who you partner with. There are other important roles that play a part, for example, the custodian that keeps the bonds safe electronically, the paying agent who ensures the investors to your bond gets their interest payments and for recent listings, an arranger who would be able to manage all the different relationships and moving parts.


It is not as difficult as it appears or as far-fetched as you had thought. It is much easier than you think. Now that the information is at your fingertips, don’t miss out on smarter financing!



This editorial is presented to you by the DCSX with the collaboration of Vertex Investments.

Author of this publication: Stephanie Shaw CFA, MBA.

Download the PDF version of this article: NL PAP EN

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