The GXG First Quote Market (formerly GXG OTC) provides early stage growth SMEs with an ideal environment to develop their business model and corporate governance whilst benefitting from a market quote.
This allows the company essential time to adjust to the rules and requirements of a public market, but on a smaller and less onerous scale. Companies also have the opportunity to establish a strong revenue-generating model – retaining their private limited company status – before taking a full public market quote. Companies on GXG First Quote also have less stringent rules to adhere to compared to GXG’s Main Quote or Official List.
GXG First Quote provides a platform for early stage companies to obtain a share price and a subsequent market capitalisation, without the need to change the structure of the company. Companies looking to raise funds though a private placing often hold greater appeal for investors if they can demonstrate an existing market quote is in place for their shares.
Information about company shares on GXG First Quote gives the company exposure that is restricted to professional and sophisticated investors. Such investors are better placed to evaluate the information provided to the market and more likely to get involved in higher risk investments. Existing shareholders in each company are also able to access this information.
Companies benefit from having their share price and company information displayed on the GXG Markets website and where appropriate they can also have their share price and charting shown on Bloomberg’s terminals, website and smartphone investor apps. They can also benefit from having their regulatory news and trading updates placed to both the market and secondary information providers such as Thomson Reuters.
The First Quote Market uses the same electronic trading platform as GXG’s Official List and Main Quote (Tellus), although the quotation is not deemed to be a fully public quotation due to the information about the company being restricted. Trading takes place under GXG Markets’ MTF license (Multilateral Trading Facility) admission to the market is approved by GXG rather than the Danish FSA.
There are none of the specific requirements that are necessary for joining either the GXG Official List or GXG Main Quote Markets. Instead, companies can gain access to the First Quote Market while retaining their private limited company status. This means that GXG First Quote is ideally suited to smaller companies that are looking to raise funds through a private placing, and who wish to build a track record with investors ahead of progression to a full public quote.
You can download a copy of the GXG First Quote Rules here, and contact us to discuss your situation and the applicability of the GXG First Quote for your business.
You can also read about the process for joining GXG First Quote and download application documentation.