Toronto-based Aequitas NEO Exchange Inc. (NEO Exchange), which is looking to shake up the Canadian exchange business, has launched a listings services business and hired an industry veteran to head up that venture.
Aequitas Innovations Inc. (Aequitas), which launched the NEO Exchange trading platform earlier this year, is now accepting applications from companies and investment product issuers seeking to list their securities. It’s targeting both new listings and companies looking to migrate their existing listing from another Canadian exchange — promising “a superior experience” for both issuers and investors driven by the company’s approach to listing standards, its market-making program and its market data.
The market-making program aims to ensure that companies and investors have reliable liquidity. It will provide real-time market data from NEO Exchange-listed issuers to all users for free “so that NEO-listed companies will benefit from unequalled exposure to investors worldwide.” Furthermore, Aequitas says its listing process and fee structure “will reduce the overall cost of going public and maintaining a listing.”
Aequitas is also offering to waive initial listing fees for issuers that migrate their listing to the NEO Exchange from a rival exchange as well as waive the annual sustaining fees in the same year of the migration “to eliminate duplicate costs.” These fee waivers are subject to regulatory approval.
“We have spent considerable time listening to the capital-raising community and investors in Canada and abroad to build a listing platform that is aligned with every company’s goal of maximizing shareholder value” stated Jos Schmitt, president and CEO of NEO Exchange in a statement. “We heard loud and clear the burdens and frustrations faced by current public companies in Canada and we are now ready with our competitive solution. By putting their interests first, our goal is to foster successful public companies. We will do so by ensuring they are truly ready to be public, by giving them access to investors, by enhancing their liquidity and by leveraging a streamlined application process. All with quality service at a fair price.”
The listings business will be led by Tim Johnston, NEO Exchange’s new chief listings officer. Prior to joining Aequitas, he was managing director and head of Canadian equity capital markets with Bank of America Merrill Lynch. And before that, he spent more than 20 years at Royal Bank of Canada’s capital markets division, in the equity capital markets and investment banking businesses.
“The NEO Exchange has quickly made significant strides in challenging the status quo in the Canadian capital markets,” said Johnston in a statement. “I have witnessed a growing concern in the capital-raising community of the limited options to foster the growth of their business and ensure long-term success. I am excited to join Canada’s newest stock exchange and to play a dynamic role in championing Canada’s success raising capital on the public markets.”