NGM introduces revenue sharing for listed companies
NGM is introducing a model which means that listed companies will receive a share of the stock exchange trading revenue. The aim is to facilitate for growth companies to take the plunge into the stock market and to support their continued growth.
The revenue split will be introduced from 1 July 2014 and, in brief, means that the company receives 25 percent of the revenue generated at NGM when the company's shares are traded. Both new and currently listed companies whose shares are traded on NGM may take advantage of this offer.
”The world is changing, and we have chosen to develop this model, which we think is more contemporary. A lower cost for an IPO helps to increase the companies' interest to enter the stock market and take advantage of the benefits that it provides. In addition, the companies' incentives to work for a good liquidity in the shares increases, thereby benefiting both companies and investors in the stock market”, says Roger Peleback, CEO of NGM.
The change is part of NGM's undertaking to increase the value of a public listing and give growing companies support and new opportunities. The model reduces companies' costs for a listing thereby providing increased opportunities for companies to procure quality promotion services from external advisors and liquidity providers, or otherwise create better conditions for a stable growth.
”By challenging exchanges' traditional cost model, we create a more attractive market for the companies. We also create an incentive for companies to remain with NGM as they grow since, with us, they receive a contribution that they can invest in their continued growth”, says Roger Peleback.
All companies listed on NGM Equity and Nordic MTF will be offered the opportunity to enter into the agreement governing the revenue distribution.
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Om Nordic Growth Market NGM AB
Since 2003, Nordic Growth Market (NGM) is an Exchange authorized by the Swedish Financial Supervisory Authority and is today a wholly-owned subsidiary of Börse Stuttgart Holding GmbH, also the owner of Börse Stuttgart, the leading retail exchange in Germany. NGM’s ambition is to be the leading exchange for retail investors in the Nordic region and to be the most attractive alternative for growth companies. NGM operates the Nordic Derivatives Exchange (NDX), a market for listing and trading of structured products, bonds and ETFs. Besides NDX, NGM also operates NG News, one of Sweden´s largest distributors of financial information. For more information about NGM, please visitwww.ngm.se