Share listing. Listing in trade is a procedure for introducing a product into the market Exchange listing

The quotation commission determines the liquidity of securities, predicts demand for them, determines their attractiveness for investors based on information that it receives from the issuer and its intermediaries, and they, in turn, undertake to regularly provide their own reports on business activities and report to the stock exchange about all important events that can affect the price of securities.

Thus, we can summarize that listing is a rather complex multi-stage procedure that does not allow unscrupulous (“murky”) companies to enter the stock market.

Goals, advantages and disadvantages of listing

The advantages that having a listing on the stock market gives to a company:

• reliability increases and trust on the part of all market participants increases;
• public fame and popularity;
• wide access to relatively cheap sources of financial resources;
• very high (and even potentially unlimited) opportunities to attract additional financial resources for the effective development of the company;
• increased growth of the company's capitalization due to increased demand and prices for its securities;
  high liquidity of securities issued by the issuer;
• in some cases - receiving special tax benefits.

Listing Objectives

It's safe to say what the purpose of the listing is:

1. creating favorable conditions for trading on the stock exchange, as well as increasing investors’ awareness of the state of the securities market, and of course - identifying the highest quality and most reliable securities,
2. protecting the interests of investors and increasing their confidence in securities, as well as creating uniform rules of examination for the admission and circulation of securities.

Listing Benefits

Today in Russia the influence of listing on domestic exchanges is very conditional. This is explained primarily by the imperfection and instability of the economy. Nevertheless, there are still advantages from including a company’s securities in the stock exchange’s quotation list:

• This means that the company meets the listing requirements set by exchanges.
• It will be easier to obtain a loan for a company; if it turns out that the market value of the company’s assets is higher than the book value, then the terms of the loan will be much better.
• For companies planning to undertake mergers and acquisitions, listing can be a favorable and sometimes decisive factor. The cost of such a company for potential investors is no secret, since the quotation of the company's shares on the stock exchange is the market price of the enterprise.

Disadvantages of Listing

The advantages of listing securities have been listed above, but, unfortunately, there are also disadvantages:

1. For a company, presence on the stock exchange may mean some control, which means that all actions, both successful and unsuccessful, necessarily affect the price of shares. Therefore, such “transparency” may not appeal to all companies.
2. The listing process is far from free and will cost you a listing fee as well as once-a-year maintenance fees.

In addition to listing, delisting of securities is also provided, that is, the exclusion of company shares from the stock exchange listing. Delisting is carried out both by the exchange and by decision of the company itself.

Particular disadvantages of listing include:

• additional control over the company (with listing the company assumes additional obligations);
• additional expenses;
• market indifference.

Investors, both foreign and Russian, are gradually and consistently raising demands that the transparency of Russian issuers be evident. All this is done to monitor and control the risks of their investments in their securities. When going through the listing procedure, as a rule, issuers of securities must be subject to appropriate requirements, and therefore a number of strict responsibilities are imposed.

This established procedure has a stimulating effect on issuers, and this achieves an increase in their transparency and openness to the investment community and the general public. All this serves one purpose, namely, it helps to strengthen the mutual trust that should exist between issuers of securities and investors, since they are participants in the securities market.

The higher the listing level, the higher the requirements for corporate governance, capitalization and trading volume of the company's securities.

Listing Procedure

Listing Types

Depending on the type of listed securities, as well as whether their issuer has listed securities on exchanges in other countries, the listing of securities may be distinguished by specialists into the following types:

1. Primary listing - primary listing.
   This is a procedure for listing the issuer's securities on a separate (local) market.

   When a company seeks to enter the international level, in order to obtain permission from the Federal Service for Financial Markets to place and (or) circulate equity securities of a Russian issuer outside the Russian Federation, it must fulfill one important condition - undergo a primary listing in Russia.

2. Secondary listing - secondary listing.

   This is the listing of the issuer's securities on one or more foreign stock exchanges.

   For Russian issuers, for example, a secondary listing is possible only after the primary listing of shares on the Russian trading platform.

3. A special listing is a listing of a company's securities that are issued for a specific purpose.
   Such securities are typically bought and sold by professional securities market participants.

   For example, Eurobonds, which, as a rule, are traded only among large market players and are not traded at all among small investors.

Listing terminology may differ - it all depends on the type of securities and issuers that undergo the listing procedure on trading platforms. There are:

• Direct listing - direct listing. Its essence lies mainly in the registration of a new company and its passage through the listing procedure.
• Depository Receipts - depository receipts. As a rule, a company's depositary receipts are listed on a foreign exchange.
• Dual listing - double listing. This is when a company successively goes through the listing procedure on several stock exchanges within one country with one goal - increasing the liquidity of its securities. Typically, a company is listed in order on several sites within one state. The advantage in this is mainly a significant increase in the liquidity of the issuer's securities.
• Cross-listing - cross-listing.
  

  Passing through the listing procedure simultaneously on several stock exchanges, usually from different countries, within the framework of an agreement concluded between the exchanges.

  Allows an issuer whose securities have passed the listing procedure on one exchange to undergo the listing procedure on other trading platforms in a simplified version, which allows reducing the time period and, possibly, the financial costs of the issuer. Simultaneous registration on different sites in different countries.

  An agreement is concluded between these exchanges, within the framework of which getting listed on one of them significantly simplifies a similar procedure on the other. The main advantage is a significant reduction in costs and deadlines.

Scheme for admission of securities to the stock exchange

The procedure for listing securities on different exchanges has its own distinctive features, however, the general scheme for admitting securities to the exchange looks like this:

1. The issuer submits an application to the exchange for listing securities and then enters into an agreement with the exchange to conduct an examination of the securities.
2. The exchange decides on the admission of securities to the exchange only after it has carried out an examination of the securities applying for listing.
3. If the issue of admission is resolved positively, the issuer enters into an agreement with the exchange on the listing of securities.
4. The issuer provides the exchange with all the necessary information to maintain the listing, and does this regularly (usually once a quarter).

It should be noted that the more the listing rules of one exchange correspond to the rules of another, the wider the opportunities for trading securities.

What does the listing procedure provide?

The listing procedure on the exchange must ensure:

• creating equal opportunities for trading participants and their clients when receiving information that must be disclosed in accordance with the rules for listing and delisting of securities;
• timely exclusion from the list of listed securities that have lost compliance with established requirements;
• necessary measures to prevent price manipulation.

What stages does the listing procedure contain?

The listing procedure (for the first and second levels) should include the following steps:

1. preliminary;
2. expertise;
3. listing agreement;
4. listing support;
5. delisting (or delisting).

At the preliminary stage, the exchange develops requirements, which it then presents to the issuer and its securities. In accordance with the Temporary Regulations, requirements are established for the first and second levels of listing. Some of the requirements are common to the two levels, but some of the requirements are different.

General requirements for two listing levels

The general requirements are:

• Securities must be issued and registered in accordance with the requirements of the legislation of the Russian Federation and other regulatory documents.
• The report on the results of the monetary issue of securities must be registered in the prescribed manner.
• Securities must be freely tradable.
• Availability of quotes from at least two market makers in the trading system on an ongoing basis.
• For shares of joint-stock companies: interested parties should own no more than sixty percent of the voting shares of the joint-stock company.
• Issuers of securities must unconditionally accept obligations to comply with the requirements established by law and the stock exchange for disclosure of information in a certain manner and volume.

Features of Russian listing

All over the world, companies undergoing the listing process receive a number of undeniable benefits for shareholders and, as a result, for themselves. The main advantage is to improve the company's image and increase the liquidity of securities, as well as to significantly expand the circle of shareholders, including large institutional investors.

For Russian companies that have undergone the listing procedure in Russia, there is an opportunity to attract the most conservative investment community - Russian and foreign institutional investors. Management companies are allowed to invest pension savings only in securities that are included in the stock exchange quotation lists.

In Russia, investing in listed securities provides additional opportunities that allow investors to seamlessly and effectively implement a variety of investment strategies.

Of course, the main requirement is timely disclosure of information, market capitalization and the number of shares in free float, as well as mandatory compliance with a number of standards of corporate conduct.

Delisting

Delisting is the reverse procedure of listing, that is, the process of removing a company's securities from the stock market listing.

The need for delisting arises in the following main cases:

1. if the issuer itself submits an application for exclusion of its securities from the quotation list;
2. if the regulatory body decides to recognize the issue of securities as invalid;
3. if a court decision on the invalidity of the securities issue comes into force;
4. if the issuer of securities is liquidated;
5. if the deadline for admitting securities to circulation on the stock exchange has already expired;
6. if the circulation period of certain securities of the issuer has expired;
7. if the issuer has not fulfilled any obligations to the exchange accepted when its securities were included in the quotation list of the exchange;
8. if the issuer's performance indicators and sales volumes of the issuer's securities do not meet certain requirements that are presented when securities are included in the quotation list of the exchange.

Source: "biznes-prost.ru"

What is listing and what are its advantages?

Listing is a procedure during which securities are admitted to circulation on stock exchanges, provided their issuers comply with the relevant requirements.

Let's look at what this means in simple words using the example of this process in trade: for example, a company wants to sell its goods in a large retail chain, for which this chain requires various additional equipment - display cases, racks, as well as marketing offers - bonuses, prizes. This process is called listing.

Where is it used?

So, this term is used in several areas:

• Directly at the stock exchange (we will consider this in detail). Here, basically, the initiator of this procedure is the issuing company, but sometimes the trading platform itself takes the initiative (when popular and promising valuable assets are distributed through unofficial channels).
• In trade, where for the manufacturer it is an opportunity to present a range of products in a retail chain, and for the buyer it is an opportunity to choose from a wide variety of goods.
• In real estate, this is an agreement between the owner of the property and the broker who sells the property and receives a commission for it.
• In programming, the program code is a listing presented in assembly language.

What are the benefits?

For the issuer, this process provides benefits by performing the following functions:

1. there is an opportunity to attract additional capital from investors;
2. access to the international stock market is opened;
3. obtaining a rating for your company and increasing its investment attractiveness;
4. asset liquidity increases;
5. Investors' funds receive an additional level of protection.

Process procedure

If an organization does not meet all the requirements of the exchange, it is included in the preliminary list - pre-listing, which protects investors from investments that may be risky. Shares on such a list can be bought or sold outside this trading platform.

The listing procedure itself is divided into stages:

• The issuer, or a consultant representing its interests, submits and registers the application.
• The exchange carries out a special examination of both securities (their volume and duration of circulation) and the organization itself - the liquidity of its assets, profitability of activities, capital flows.
• Next, the necessary package of documents is provided. These are audited financial statements for the previous 3 years, documents on the issue of securities, expert assessments, and others, as required.
• The Securities Admission Commission analyzes the submitted documents, determines the initial placement price of the securities, forecasts their demand and attractiveness for investors.

Moreover, each trading platform has its own requirements for issuing companies.

For example, the New York Stock Exchange requires a market capitalization of at least $75 million per month, otherwise the company is put on probation for 18 months. And if the organization has undergone an IPO, then the total value of all its shares must be within the limit of 100 million dollars.

The price of penny shares (costing less than $1) is also required to rise above $1 within a month, otherwise they will be removed from the lists.

And in Germany the stock market imposes fewer conditions:

1. the company's capital must be at least 3.5 million euros;
2. As is the case throughout Europe, a company that has worked on the market for at least 3 years can apply.

Moscow Exchange requirements

Let's consider the features of listing on the Moscow Exchange - MICEX. This process is carried out by including securities in a list that consists of three levels, where the first two are quoted and the third is not.

The requirements for placing shares on this exchange include:

• compliance of shares and information provided about them with the legislation of the Russian Federation;
• market capitalization must be at least 60 billion rubles, with a total number of ordinary shares of 3 billion rubles, and preferred shares of 1 billion (for the first level);
• the duration of the client’s activity must be at least 3 years (for level 1) and 1 year (for level two);
• disclosure of statements under IFRS for the previous 3 years (or 1 for the second level);
• corporate governance must comply with the requirements of the given trading platform;
• for the first level, the volume of transactions per quarter must be at least 1 million rubles.

Each type of security has its own requirements.

Classification

Depending on the publicity, there are primary and secondary listings:

1. During the primary process, securities are traded on a local exchange, and it must be completed in order to enter global exchanges. There are several listing methods on the organized primary market:
   • invitation to the public directly by the issuing company;
   • offers for sale of shares of existing shareholders;
   • tender offers for investors;
   • private placement;
   • through execution or conversion, and other methods.
2. With a secondary listing, shares are included in lists traded abroad, and are further divided into 2 categories: direct list (registration of issuers that have just entered the world market) and depositary receipts (registration of depositary receipts instead of shares).

If the issuer carries out the listing procedure not on one exchange, but on several, then this process is divided into:

• double (being on the lists of several trading platforms of one state, which significantly increases the liquidity of securities);
• cross-listing (registration on sites in several countries, where after the first registration, you can get into the next list using simplified rules, which significantly reduces the company’s time and costs).

Source: "ruslantrader.ru"

Listing in trade is an opportunity to sell goods at a retail outlet

Listing – from English listing (listing). A sales listing refers to the ability to sell a product at a retail outlet. Most often, this term is used in relation to retail outlets to which it is planned to supply certain products. Listing is carried out in several ways:

1. Through direct sale, which is your direct responsibility.
2. Through a free product. This procedure is used by large companies to quickly create primary distribution. For example, sales representatives of tobacco companies give out a carton of cigarettes if they are displayed on display at the recommended price.
3. Through payment. Often retail outlets set certain financial conditions for introducing goods into their range. These can include both official payments and “kickbacks” in various options.
4. Through one-time promotions. In this case, the store staff is offered a bonus, discount or valuable prize for the purchase of the products specified in the promotion. The most common events are in the form of “X+1” (if you buy X units of new products from us, we will give out a unit of popular products for free).
5. Through loyalty programs. Some companies offer retail staff to participate in programs to maintain the recommended assortment, periodically incentivizing them with free products, gifts and other pleasant little things. In this case, when a new item appears, its availability is automatically included in the terms of the program and, as a rule, the administration of stores and kiosks involved in the program does not refuse to expand the assortment.
6. Other measures. It all depends on your imagination. For example, installation of valuable commercial equipment, subject to the purchase of the necessary commodity items.

Source: "gornostaev.com"

Increasing our own presence in the retail network

The market share, sales and profit of any B2B company working with retail depend on the size of the customer base (number of retail outlets) and the level of representation on the client’s shelves. But if the growth in the number of retail outlets is insignificant or distributed evenly, both among you and your competitors, then to increase the current market share, the emphasis should be on increasing your own representation in customer networks.

initial situation

We will tell you how to achieve this and how your sales will change with an increase in shelf shares using the example of the largest Ukrainian distributor “L”, which supplies its products to more than 2000 retail outlets throughout Ukraine.

Since the beginning of 2012, L has experienced a slight but steady decline in sales growth and GMROI. Since the slowdown in growth rates occurred against the backdrop of positive dynamics in turnover and gross profit, this was not perceived as an alarming signal. The turning point that indicated a problem was at the end of year 13, when inventory turnover increased by almost seventy percent (in months of turnover, compared to year 11).

An analysis of the reasons for overstocking showed that over the course of 1.5-2 years there was a systematic increase in the assortment on the part of “L” and a reduction in the representation of “L” brands in retail chains. At the beginning of the 14th year, more than 70% of the “L” assortment was presented in various retail outlets “occasionally”, and only 30% could be considered the “core”.

The reasons for the reduction of the “L” brands (as well as the brands of other distributors) were:

• The desire to break brands apart and separate them into categories (which corresponds to the logic of retail).
• The desire to represent as many brands (and, accordingly, suppliers) in the category as possible.
• The desire to increase competition between suppliers and use it for your own purposes, increasing non-operating income (bonuses, listing, marketing).

The result of the reduction in representation was not only the washing out of the “L” range from the chains. Knowing that representatives of competing chains often visit competitors' stores, it is easy to imagine what conclusions they drew by observing the microscopic areas allocated for “L” products: “So, “L” is no longer a leader, which means its products are no longer the same popular, which means it can be trimmed in our network.”