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Switzerland

New rules for listing on the SWX local capsWenger Vieli Belser

The new rules governing the listing on the SWX local caps segment, approved by the Admission Board on May 24 2000, came into effect on January 1 2001.They are applicable to all issuings and issuers whose equity securities are to be traded for the first time on the SWX Local Caps segment after this date. The requirements and standards of disclosure have been tightened by an adoption of most of the provisions applicable to main board listings. Any company seeking a listing will have to draw up a full listing prospectus and publish an advertisement. Continuing reporting requirements have also been increased to two financial reports a year.

Some of the distinguishing features remain. The issuer must have been in existence as a company for at least two full fiscal years, for which annual financial statements have to be presented; from now on, the latter have to be based, however, on internationally recognized accounting standards, such as FER (Fachempfehlungen zur Rechnungslegung), International Accounting Standards, US GAAP or standards of similar quality. The equity capital disclosed in the balance sheet will have to be, at the time of listing, at least Sfr2.5 million ($1.52 million). Equity securities for which the new listing is sought will have to represent a sustained off-exchange capitalization of no less than Sfr10 million – admitting, nonetheless, an anticipated capitalization at that level if the capitalization, in the absence of off-exchange trading, cannot actually be demonstrated. Public holding of the equity securities listed on this segment is considered sufficient if it reaches 15% of all equity securities issued.

The purpose of the SWX local caps remains the same: the segment serves as a home for young but adequately mature companies, such as those with local significance, or family-owned companies with a limited investor base only, which do not yet qualify for a listing on other SWX trading segments.

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