The International Stock Exchange (TISE) has launched a new service for private companies, TISE Private Markets, which provides unlisted companies with access to an integrated set of tailored electronic trading, settlement and registry solutions.
“We have conducted significant market research to develop this unique offering whichwe believe will be a particularly attractive alternative for privately owned SMEs considering means to improve the liquidity of their shares and also attract potential new investors,” said Cees Vermaas, CEO of TISE.
Private markets comprise investments in assets not traded on a public exchange or stock market. According to data from McKinsey, total private markets assets under management reached $11.7 trillion as of 30 June 2022, growing at an annual rate of nearly 20% since 2017.[1]
TISE continues to operate its public market for bonds and equities as well but has expanded its product and service suite with the addition of the new private markets offering.
With TISE Private Markets, companies have full control of their dedicated market, from approving and onboarding shareholders to scheduling auction events and managing registers.
TISE Private Markets’ auction model aims to concentrate liquidity, enhance price discovery and reduce price volatility. Pre-funded orders meanwhile, mitigate counterparty risk and facilitate seamless electronic settlement of cash and shares which don’t have to be held in a depository (eg CREST).
Existing shareholders of the company also have first right of execution in an auction, with approved new shareholders only able to participate in any new surplus.
There is a single annual subscription fee for the service and there are no intermediary charges, transaction fees or other commissions.
