Newly launched Canadian exchange Aequitas NEO has launched its listing platform today, putting it head-to-head in competing for IPO business with the country’s incumbent TMX Group.
Aequitas said it is ready to accept applications from companies and issuers of investment products to list on its exchange.
The group has touted its focus on investors and issuers, rather than high-frequency traders, as its major selling point.
It adds that its listing standards are intended to ensure issuers are fully ready before they become publicly traded. They will also benefit from exposure due to real-time market data from NEO-listed companies being made available to all users for free.
The company said its fee structure is designed to be simple and based on the type of security that is listing and the actual costs incurred by the exchange and said it is cheaper than the Toronto Stock Exchange, TMX Group’s primary listing exchange.
Jos Schmitt, CEO of Aequitas NEO, said: “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.”
Tim Johnston has been hired as Aequitas NEO’s chief listings officer and will lead the public listing business and drive its development. He joins Aequitas from Bank of America Merrill Lynch, where he was head of Canadian equity capital markets, and also spent over 20 years at RBC Capital Markets.
“The NEO Exchange has quickly made significant strides in challenging the status quo in the Canadian capital markets,” said Johnston.
“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.”