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Introduction
The companies with listed securities will face subsequent costs to the IPO/bond offering and related to the life of a company with listed securities, in particular the fees due to Euronext and the CMVM, as well as costs related to on-going and periodic disclosure requirements and secondary issues following a capital increase.
Particularly for an IPO, these expenses may be more than offset by the reduction or elimination of the illiquidity discount: it is estimated that the value of an unlisted company is 15 to 25% lower than that of an identical company listed on an efficient market. Similarly, it should be noted that the costs of secondary offerings are much lower than the costs of primary offerings, given the absence of costs related to financial and legal restructuring and the reduced effort necessary to make the public know the company.
CMVM fees
Services for the continuous supervision of the information provided by issuers to the market.
► A quarterly fee is due to CMVM, for each issuer of securities admitted to trading on a regulated market, for the continuous supervision of the provision of information to the market, in an amount depending on market capitalisation:
► Each Issuer of securities admitted to trading on a multilateral or organised trading system is charged a quarterly fee of €250, due to the CMVM, for the continuous supervision of the provision of information to the market.
Euronext fees
Subsequently to the listing process, listed companies must pay an annual fee to remain listed on the stock market. Annual Fees cover one calendar year, are payable at the beginning of the relevant year, are not refundable if the securities cease to be traded and/or are delisted during the year. The stock exchange, Euronext, charges the following ongoing annual fees for securities:
Equity
Euronext Access
► A fixed fee of €3,000
Euronext and Euronext Growth
► The following variable fees for each tranche of number of equity securities:
► The following variable fees for each tranche of market capitalisation:
Both fees, for Euronext and Euronext Growth, can reach a maximum of €72,500.
Debt
No annual fees are payable by Issuers of debt securities, except regarding material corporate events.
Equity + Debt
A material corporate event is any extraordinary corporate action or a specific combination of (subsequent) corporate actions for securities admitted to trading on any Euronext Market, and for each of these events a fee of €10,000 is charged to the issuer.
To check more detailed fees charged by Euronext: https://www.euronext.com/en/trade/fees-charges
Euronext Securities fees
The monthly maintenance fees for issues registered in the centralized securities systems are based on the monthly average value of the issues registered in issue accounts of a same issuer, calculated from their daily value.
In the case of securities issued by more than one entity, grouped issues, the issuer entity that must benefit from a discount is the one responsible for the exercise of ownership rights before Euronext Securities, or for paying Euronext Securities’ fees.
The fees to be applied regarding the issues’ maintenance are calculated by applying the annual percentages, as follows:
Equity
Debt
Valuation of the holdings
The valuation of the holdings is based on:
► The nominal value, for debt instruments and other unlisted securities, and whenever the market price is not disclosed by Euronext or Interbolsa, however, the valuation is based on the value of the total issue, when debt instruments are represented in a nominal value amount, and if the issue in question uses the pool factor method, the amount of the issue must be multiplied by the value of the pool factor
► The prices or market values, disclosed by Euronext, for listed securities which do not represent debt:
► Whenever the market price is provided to Interbolsa by more than one national managing entity, the price divulged by the regulated markets’ managing entity prevails, even if the securities in question are listed in other markets or systems;
► Whenever Interbolsa does not get information on time about the most recent market price, for effects of valuation, the last market price that has been given for the purpose must be used;
► In the case of entities that are undertaking insolvency procedures or liquidation, and which securities have been listed in the market and then excluded from trading for that same reason, the last market price, which was previously used by Interbolsa for the calculation of the maintenance fee, must be used for the valuation.
To check more detailed fees charged by Euronext Securities: https://www.Euronext Securities.pt/informacao-e-documentacao/dados-da-atividade/lista-de-precos/
Other costs
Having securities admitted to trading on the capital markets also entails other ongoing expenses besides the fees referred above. Companies with securities admitted to trading must comply with the reporting requirements, including the disclosure of an annual and semi-annual reports, which often require a company to incur legal and/or accounting/auditor fees.
A company with securities listed in the capital markets will also often incur increased costs to maintain adequate financial reporting, compliance and legal staff whose focus is to make sure that the company complies with its regulatory obligations.
Estimates on post-offering costs can vary widely depending on pre-existing resources of the company, the type of securities and the markets where they are admitted to trading. On one hand, regulatory requirements applicable to shares admitted to trading in a regulated market are more demanding that the ones applicable to debt securities admitted on such markets and, thus, could involve higher costs. On the other hand, the regulatory requirements applicable to shares and debt securities admitted to trading on an MTF are considerably less demanding that the ones of the regulated markets and, thus, could involve considerably lower costs.
