As part of its strategic partnership with Instant IPO SE (www.instant-ipo.de), Instant Group AG (ISIN DE0005418404, primary market Düsseldorf, stock exchanges Frankfurt, Berlin, Munich, Stuttgart) has established that the use of shell companies for SME financing is becoming increasingly important in the ’stock exchange listings‘ business sector.
The shell company was also included in the renowned publication “Handbuch börsennotierte AG”. This recognition underlines the increasing importance of shell companies as a sustainable financing instrument.
Shell companies – i.e. companies that are already listed but not operationally active – offer companies a genuine alternative to the traditional initial public offering (IPO). Instead of taking the lengthy and cost-intensive route of an IPO, companies can go public via a shell company with less regulatory effort. In addition, the purchase of a shell company is not only much more cost-sensitive, but is also the quickest way to go public.
Especially for small and medium-sized companies and SMEs, which are often confronted with limited financing options, the route via a shell company opens up new opportunities for growth and capital procurement.
A broader financing base is becoming increasingly important for all companies, especially in times of more restrictive lending and unpredictable interest rate trends. Acquiring a shell company not only offers companies the quickest way to establish their own capital market presence, but also increases their flexibility in raising equity capital.
However, having your own stock market access is by no means just a financing alternative, but opens up completely new financing options. For example, your own shares can also be used as a kind of currency to finance share acquisitions or takeovers or to motivate employees via options. These advantages are increasingly being recognized by small, medium-sized and mid-sized companies in times of challenging markets.Stock exchanges are also showing a much greater interest in small and medium-sized companies with a business focus on the DACH region.
The inclusion in the ‚Handbuch börsennotierte AG‘ is evidence of the growing acceptance of shell companies as a strategic financing instrument. It illustrates the growing role that shell companies are playing in the capital market. In view of current economic developments, this trend is likely to gain further momentum.
