NYSE Euronext has created a status of adviser that not only prepares the company for an admission to listing but also guides and counsels the company regarding its ongoing reporting and disclosure requirements. A Listing Sponsor is a company acting as an investment-services provider, audit firm, legal counsel or corporate finance specialist.
Listing Sponsors play the lead role in the listing process, their presence being intended to bolster investor confidence. They ensure the company meets all applicable criteria for listing and that it fulfills ongoing reporting and disclosure obligations. This is done in consultation with the company and its legal advisers and auditors.
The principal tasks of the Listing Sponsor are:
Listing Sponsors are responsible for producing a business plan, outlining the company’s goals in the listing process and intended use of the funds raised. They will determine whether the level of financial information available about the company is sufficient to comply with the level of financial disclosure expected by the market. In doing so, they may identify changes to be made in the company’s management structure to facilitate the appropriate level of corporate governance and recommend suitable candidates for any non-director positions. They will also assess investors' appetite for the company’s shares by consulting with the firm’s investment bank, market analysts and a selected group of investors.
Due diligence is undertaken by the auditors and lawyers in coordination with the Listing Sponsor. The process is intended to ensure that the company’s prospectus or offering circular contains all relevant information about the company and that the material is accurate and clear. Once this is complete, the company’s lawyers are responsible for drafting the prospectus or offering circular in partnership with the listing sponsor. The Listing Sponsor must then provide the concerned market operator with written confirmation that the applicant complies with the listing requirements.
The Listing Sponsor continues to guide the company on disclosure and reporting obligations, such as price-sensitive information, significant shareholdings and financial statements, throughout the company’s life on the NYSE Alternext market. If the Listing Sponsor fails to meet its obligations, NYSE Euronext may issue a warning—which is published on the website—or remove it from the list of approved listing sponsors.
NYSE Euronext approves the registration of all Listing Sponsors. The lists of the current Listing Sponsors can be found on the left side of this page.