TMX Group Sees Listings Among Smaller US Companies
30 Settembre 2009 - 10:39PM
Dow Jones News
The chief executive of TMX Group (X.T) is pitching the Canadian
exchange operator as an alternative listings venue for small and
mid-sized U.S. companies, part of an ongoing campaign to broaden
TMX's listings base.
Tom Kloet, visiting U.S.-based companies this week, highlighted
a Canadian regulatory environment that he said compares favorably
to that of the U.S., particularly for smaller companies seen as
candidates for TMX's Venture Exchange platform.
"We believe there happens to be an under-served marketplace in
the small and mid-cap space in the U.S.," Kloet said in an
interview on Wednesday.
TMX was formed through the 2008 merger of the Toronto Stock
Exchange and the Montreal Exchange derivatives platform.
It is pursuing new listings in the aftermath of a global
economic crisis that saw many private companies postpone a public
flotation, or pursue other options for financing in a tight credit
environment.
The Toronto-based company is actively courting U.S. companies
for its Toronto Stock Exchange and Venture Exchange platforms, and
has 264 international issuers with a combined market capitalization
of $64.2 billion.
Kloet said he is seeing "cautious optimism" among companies
considering an IPO - the first eight months of 2009 have seen TMX
surpass its 2008 total for new listings.
"That tells you that if there's a credible story, and there is a
company with decent prospects, there is money available to be put
into the markets," Kloet said.
During the U.S. road show, a key focus has been its junior
Venture Exchange platform, which Kloet described as a stepping
stone for smaller companies looking at a listing on the TSX or
rival offerings from NYSE Euronext (NYX) or Nasdaq OMX Group Inc.
(NDAQ).
Kloet said that 437 Venture Exchange companies have "graduated"
to a TSX listing over the past nine year. TSX carries a higher
market cap threshold and more stringent regulatory
requirements.
About 20% of the 500 largest TSX-listed companies started out on
the Venture Exchange, according to Kloet, and the junior platform
can be attractive to U.S. companies wary of tough U.S. standards
around audits and internal controls for public companies.
One such company is Acro Energy Technologies Corp. (ART.X), a
Houston, Texas-based solar energy integration company that listed
on the Venture Exchange in 2008.
"We looked at the fact that it offers a nationwide listing, with
a bit more publicity and visibility than an OTC bulletin board
listing," said Douglas Samuelson, general counsel for the company,
which installs power systems for residences and small commercial
projects.
Samuelson said it was possible that Acro Energy could eventually
move up to a TSX listing, though it could also consider a dual
listing on the Venture Exchange and a U.S. exchange.
-By Jacob Bunge, Dow Jones Newswires; (312) 750 4117;
jacob.bunge@dowjones.com