THE IPO MARKET IS ROARING BACK TO LIFE THE TIME IS RIGHT TO LIST YOUR COMPANY

After a few comatose years, the IPO market is roaring back to life.

Initial public offerings started to slow down in 2008, when about 100 companies filed to go public, says Tracey Panek, an editor at Hoover's. Then, the financial crisis hit in earnest -- and sucked all the credit out of the room.

"IPOs dried up," says Frank Fantozzi, CEO of Planned Financial Services. "With the investment banks going into a shell, there was no financing to create the leverage needed. Plus, investors were afraid to invest when they saw their 'safe' investment values cut in half, so there was no market."

Fast forward to today. "Markets have stabilized, and the balance sheets of companies are the strongest in 30 years," says Fantozzi. "Investment banks are looking to make deals."

Simply put, says Panek, "More companies are reassured that they can get the money they need to expand and grow their business by taking their company public on the stock market. 

At Least 300 IPOs in 2011

As the market continues to rise, the size and the excitement of IPOs is once again beginning to intrigue small investors -- and with good reason. "Who wouldn't want to have gotten in on the ground floor of Microsoft (MSFT), Amazon (AMZN), Apple (AAPL), to name a few," points out certified financial planner Michael Kresh.

With 156 active IPOs in the pipeline as of Monday, according to ipoboutique.com, there's plenty of action. And year-to-date through Feb. 16, 24 IPOs have been priced, nearly 85% more than by this time last year, according to Renaissance Capital, a provider of independent IPO research and investment services. That group included Freescale Semiconductor with its $1.15 billion offering.

Panek believes the IPO pipeline is only likely to grow. "It's a safe bet to say at least 300 for all of 2011."

"The sheer number of companies filing IPOs suggests the market is regaining momentum," says Panek. "Also, the diversity of industries -- it's not just tech companies or venture-backed companies that are filing." Among the industries with prospects are real estate, health care, aviation and even oilfield services. Still, it's the rumors about names like Facebook and Groupon that account for the biggest chunk of the uptick in general interest.

How Average Joes Can Invest in IPOs

But what does this mean for the average investor? Access to the "hot names" in the primary market are reserved for investment banks' top clients, says Michael Gault, a senior portfolio strategist at Weiser Capital Management. "And depending on the issue, even the best clients will have a difficult time getting the allocation they desire."

However, there's another way to skin the IPO cat -- the First Trust U.S. IPO Index Fund (FPX). This exchange-traded fund seeks investment results that correspond generally to the price and yield (before the funds fees and expenses) of the IPOX-100 U.S. Index, which is a modified value-weighted price index measuring the performance of the top 100 companies ranked quarterly market capitalization in the IPOX Global Composite Index.

It's a rules-based, value-weighted index measuring the average performance of U.S. IPOs during their first 1,000 trading days. The index is reconstituted and adjusted quarterly. The ETF is promoted as an investment tool for buy-and-hold investors seeking timely and systematic IPO exposure, as well as for active market participants.

But as with any investment, it isn't without risk. The fund's own fact sheets state that its return may not match the return of the IPOX-100 U.S. Index. The fund may not be fully invested at times, it generally won't buy or sell securities in response to market fluctuations and the securities it buys may be issued by companies concentrated in a particular industry.

Also, the fund may invest in small- and mid-cap companies, which may experience greater price volatility than larger, more established companies. And it's classified as "non-diversified" meaning it may invest a larger percentage of assets in the securities of a smaller number of issuers. As a result, the fund may be more susceptible to the risks associated with these particular companies or industries, or to a single economic, political or regulatory occurrence affecting these companies.

Don't Be Fooled By the Name

"FPX is an interesting option. But it's important to note that investors will not participate in any gains in the first week of trading, which is oftentimes where companies see the biggest appreciation," points out Gault. On average, IPOs in the U.S. earned 16% to 18% on the first day of trading, measured by their closing price, according to Lena Booth, a finance professor at Thunderbird School of Global Management.


Though 100 companies are in the index, more than 37% of the fund's assets are in the top five holdings, and almost half of the fund's assets are in the top 10 holdings.

"This ETF is not allocated shares in the primary market, and it's not participating in the IPO market to the extent that the name leads investors to believe," says Gault. "They need to understand what they are buying."

If an IPO fund could get the IPOs at their offer prices, it would benefit individual investors more, says Booth. However, given the relatively low fees of the FPX fund, "It is a good choice for investors who want to buy newly issued stocks, but want to diversify firm-specific risk by buying a portfolio of them rather than a single one or a few," adds Booth

From Jan. 1 through Feb. 16, the fund was up 5.44%. In the last six months it was up 27.25%. And from a year ago, it was up 28.71%, according to fund research firm Morningstar (MORN).

Play Carefully

IPOs may have a lot of hoopla surrounding them, and in the early going, they can provide impressive gains. However, their longer-term performance -- three years after IPO -- doesn't hold up as often, says Booth. "Research has shown that long-run performance of IPOs trails seasoned companies' stock on a risk-adjusted basis," she adds.

So, if you're going to get into the IPO game, play carefully. "Treat it more like a sector," recommends Fantozzi. "Consider allocating a portion of your portfolio to it for a period of time."


CONTACT  REGENCY GLOBAL ADVISORS TO TAKE ADVANTAGE OF THE IPO MARKET AS IT ROARS BACK INTO ACTION.

    INFO@REGENCYGLOBALADVISORS.COM 

THE ADVANTAGES OF LISTING ON THE FRANKFURT STOCK EXCHANG

The Advantages of Listing on the Frankfurt Stock Exchange


The Frankfurt Stock Exchange was founded almost 400 years ago. It hosts companies from over 60 countries. 

Many American businesses are going public in Frankfurt to avoid some of the onerous regulations and oversight of the American stock exchanges. 

Frankfurt has a higher turnover velocity than the London exchange, and is third in terms of sheer volume, just behind New York and NASDAQ. 


XETRA


This is the newest and most versatile stock trading software in the world. It is one of the main reasons why many are switching to the Frankfurt Exchange. This software platform is continually scanning the market for suitable buyers and sellers faster than the New York platforms. Furthermore, it is the fastest in detecting irregular buying patters and issues "alerts" when such things are found. 


Costs
 
The Frankfurt Exchange prides itself as the cheapest system to use for stock trading. Its initial costs are low, and, for first time listers, the exchange will absorb all first year costs. In addition, it is also the fastest listing, with most applications being approved within six weeks. It also has far less ongoing costs than its main competitors in London, New York and Japan. 

Regulation

When applying to list on the Frankfurt Exchange, there is no requirement to submit an audited financial statement. In addition, the Exchange boasts that American firms would be escaping the Sarbanes-Oxley requirements. First passed into American law in 2002, these regulations seek to control how businesses run, demanding detailed financial disclosures to the American state for analysis and auditing. In addition, these requirements inflict higher penalties than anywhere else for government defined corporate wrongdoing. 

Visibility

The Frankfurt Exchange provides American and Japanese companies with a tremendous visibility on the European market. In addition, this visibility can assist foreign firms in raising European capital and breaking into the European market.


TO PURSUE YOUR BEST LISTING OPPORTUNITIES  ON THE FRANKFURT STOCK EXCHANGE, CONTACT REGENCY GLOBAL ADVISERS TODAY. 

INFO@REGENCYGLOBALADVISORS.COM 

Frankfurt Stock Exchange: Why List on the Frankfurt Stock Exchange?

More Frankfurt Stock Exchange Listings than all the other exchanges in the world except the NYSE and NASDAQ.

With the merger of NASE Euronext with the Doetche Boerse, the current merger would increase its position to No. 1 in the world in market cap and trading.

Here are the advantages and benefits tghe Frankfurt Stock Exchange offers your company: 

No restrictions on shares, even for officers and insiders, thus ALL SHARES are free-trading.

The marketing of shares and companies in Germany are allowed within the rules of BAFIN, which is a much more relaxed regulatory structure from the perspective the onus is on the investor and not so much the Issuer.

A prospectus is not required, and the minimum capital-in is only 500,000 euro
There are no minimum percentage of free float shareholders.

An audit is not required on the First Quoation Board, and financials are only management prepared.

There is no Sarbanes-Oxley to contend with like the OTCBB or NASDAQ.

There are no regulatory approvals for news and acquisitions like the TSX or ASX, thus you can operate your mergers efficiently without delay.

The number of retail and institutional investors within the exchange make it more liquid than all exchanges in the world, especially with the NYSE merger, with the exception of NASDAQ and NYSE at the the present time.

Naked short selling is BANNED.

Listing a company can occur in 3-6 weeks, making it the fastest exchange to list on than any other public listing on an exchange.

Ongoing costs are minimal, 5k euro per annum, with no quarterly requirements or costly exchange fees such as those at the OTCBB, TSX Venture, Hong Kong, BSE or ASX exchanges.

Companies can act as their own underwriter, thus public offerings can be done on the Frankfurt Stock Exchange without the cost of an underwriter.

Frankfurt is eligible for many countries retirement contributions, such as RRSP accounts in Canada, and it is one of the most respected stock exchanges in the world.

Access to Capital: Investors with the acquisition of the NYSE would make up 40% of the world’s equity market.

The Deutsche Boerse website is one of the highest traffic websites for exchanges, with an audience of 120 million investor viewers!

No lock-up period required under German law

No disclosure of major holdings’ capital movements required in the Entry Standard
XETRA®– the electronic trading system of Deutsche Börse is a pioneer in Europe
254 international trading institutions admitted – more than 4,600 traders in 19 countries interlinked in a virtual listing and trading world.

More than 550 Depository programs and 9,000 shares from countries around the world are listed and traded on Deutsche Börse

Contact info@regencyglobaladvisors,  to reach the  recognized leader in listing firms on the Frankfurt Stock Exchange, the Regency Global Advisors consortium.

The Advantages and Benefits for You and Your Investors

Liquidity

Having public stock provides liquidity for you and your investors. If you are currently a privately held company, your private stock is not as liquid as it would be if it were publicly held stock. You have the ability to create an entire new market for your stock when you take your company public and it may also help the company borrow more easily.

The liquidity will also benefit your investor’s investment and may make your company worth more to them. It can also mean that they will be able to form an exit strategy, or diversify their current portfolios.
 
Trade Stock

Going public means that your investors will be able to buy, trade or sell your company’s stock much more easily. (The initial stock that they receive will have a one-year hold).
 
Instant Stock Quotes Investors will be able to instantly get a stock quote either on the Internet or through their broker.
 
Employees Also Benefit

Taking your company public can result in financial rewards and independence for not only the owners and investors, but the employees who can also be stockholders.
Estate Planning. If you have family members that are counting on you to provide for them in the future, the stock in your publicly traded company can be used as a part of your strategy for retirement. You can use these assets to allow your family the financial freedom they may need when you are no longer with them.

 
Stable Stock Price

he limited amount of available public stock that will be out in the marketplace (and the 1 year hold) will produce a strong and stable trading price.

 
Benefits - For Your Company
  
Access to Capital

Taking your company public will provide potential investors a feeling of confidence in your company, which will be translated into the ability for you to raise more money. 
Mergers and Acquisitions. If you have been interested in merging or purchasing another company, you can also benefit from taking your company public. The stock that is sold in your company may be worth as much as cash to another company. If you do decide to attempt a merger or acquisition using your stock, you will be able to use the current market value of your stock when performing the transaction.
 
Compensation for your Employees

You cannot overlook the benefits that you can reap by attracting highly qualified employees by offering them stock in your company. This can also be a reason that these people decide to stay with your company especially if your industry has a high turnover rate. This can make the difference in retaining your key employees.
 
Attract High-Level Executives

You can also use this option to attract high-level executives for your company. While you can offer stock in a private company to potential employees, publicly traded stock is usually more valuable and desirable to your future executives.
 
Gives your Employees the Incentive to Work Harder

The liquidity of public stock allows your employees to reap greater rewards. They will feel as if they are a real part of your company instead of a mindless drone pulling in a regular paycheck. By making them part owners with you, you are sharing with them your drive to make your company the best it can be. The incentive to work harder to make the company better is instantly rewarded when the stock price goes up. This incentive ties in your employee’s future with the success of their company.
 
Prestige

If you are worried about the appearance of your company, or its overall public appeal, when you take your company public, it can provide an air of not only legitimacy, but also stability. Public perception of your company is key in having the resources and abilities to expand your company. The prestige of your company will also reflect on you as the owner. Typically, founders, co-founders and managers of public companies are regarded as having a level of prestige.
 
Public Companies are Generally Worth more than Privately Held Companies

In many cases, the difference is quite substantial. When you take your company public, you will see an almost immediate increase in value to you, as the owner.
In a recent study conducted by the United States Chamber of Commerce, it was revealed that when owners of private companies sell their companies they receive on average 4 to 6 times the their net earnings. Owners of public companies sold their companies at an average of 25 times their net earnings. (i.e. - a company earning $1 million would be worth $25 million). Companies within the technology sector performed at even higher averages. These figures cannot be overlooked.
Why does this occur? Investors in a private company are generally concerned with the “non-liquidity” of their holdings, and they feel that they are lacking access to a public market. This can mean that two companies in the same sector can be valued at a different level, based only on whether or not they are a publicly traded company.
An exit strategy may play heavily into an investor’s decision to back your company, as mentioned earlier. If they will be able to sell their stock to the public, they will feel more comfortable investing in your company. It can also assist you, as the owner, in having more leverage when discussing options with potential investors.

 
Additional Benefits - For Your Company
 
Consumer Confidence

If you do business with the general public, you need to be concerned with consumer confidence. By taking your company public, you can convince these consumers that you mean business. This can assist you when dealing with mergers, potential new employees and the public as a whole. Your company’s reputation is solidified when you take this step.
 
Gain Awareness

More people will become aware of your company as it goes public and you will be able to gain important exposure. If your customers or suppliers become shareholders or joint venture partners, this can translate into increased repeat sales and business. Banks will also consider the prestige of your company when making decisions about lending money. You will be looked upon as less of a credit risk. It may also result in getting lower interest rates on these loans.
 
Publicity

The publicity that comes when a company goes public should never be overlooked. You will probably get mentioned in newspapers, magazines, and online. Private companies rarely receive this amount of attention. The attention is also free, which means that you can utilize it in an overall advertising strategy to maximize the benefits of this free publicity. Public companies also receive attention from analysts and daily attention from stock market tables. This keeps your company’s name in the public eye and increases your ability to create an instantly recognizable brand. You may be able to use this publicity to attract new partners or merger possibilities that never would have existed when you were a privately held company. The constant attention from the media, coupled with annual reports required by the SEC creates a firm foundation for your company.

Contact Regency Global Advisors to qualify for a listing - info@regencyglobaladvisors.com 

The Frankfurt Stock Exchange

Frankfurter Wertpapierbörse (FWB®, the Frankfurt Stock Exchange) is one of the world's largest trading centres for securities. With a share in turnover of more than 90 percent, it is the largest of Germany's seven stock exchanges. Deutsche Börse AG operates the Frankfurt Stock Exchange, an entity under public law. In this capacity it ensures the smooth functioning of exchange trading in Frankfurt.

The Frankfurt Stock Exchange facilitates advanced electronic trading, settlement and information systems. Thus, it is able to meet the steadily growing requirements of cross-border trading. Besides traditional floor trading, its fully electronic trading system Xetra® is one of the leading electronic trading platforms in the world. With its launch in 1997, the Frankfurt Stock Exchange succeeded not only in strengthening its own competitive position. It also created attractive framework conditions for foreign investors and market participants.

Today, the Frankfurt Stock Exchange is an international trading centre. This is also reflected in the structure of its participants. Some 140 of around 300 market participants come from abroad.