The Original Listing Fees for the Toronto Stock Exchange (TSX) can range from $10,000 to $200,000 or even higher. This is based on several factors like the company's market value at the time of listing, the nature and complexity of transaction, the type of business and TSX listing requirements.
So, if you ever thought to list your company on the Toronto stock exchange, here are the details you might be interested to follow.
A non-refundable deposit of $10,000 must be submitted at the time of the application.
There will be extra charges for certain transactions like real estate purchases, public offerings, and private placements throughout the listing's lifespan. After the first year of the listing, there will also be an annual sustaining cost.
An administrative fee will be charged by the securities commission for the filing of a prospectus as well as for any additional filings.
Please check with your local securities commission or your attorney for information as fees differ by jurisdiction.
The underwriter who handles your prospectus filing will also get an additional brokerage charge, determined as a percentage of gross profits.
The sponsorship fee is a third-party expense that you must pay to a reputable Participating Organization or Member in order for them to do a due diligence investigation to make sure your company complies with Exchange listing standards.
Regardless of industry, sponsorship will be necessary if the company uses unproven or unusual technologies or has foreign financial holdings.
The cost of a qualifying transaction, reverse takeover, or initial public offering can range from $15,000 to $50,000, though it may be more expensive depending on the amount of due diligence needed.
A sales fee that can be negotiated and ranges from 6% to 10% of the value of the shares sold, plus a warrant, will be requested from the investment dealer who will be selling your company's securities into the market.
The profits from the offering will be used to pay this sales commission.
The investment dealer may additionally charge a corporate financing fee; however, this is typically included in the above-mentioned sponsorship fees.
Once your business is listed, you can anticipate paying yearly additional legal and accounting fees that go above and above what you paid as a private business.
This is due to the increased reporting requirements that come with a public listing and the price of adhering to corporate governance norms.
If you want assistance to meet your company's continuous disclosure responsibilities, such as quarterly financial statements or news releases, your legal and investor relations fees can also increase.
To sum up, how much it costs to list your company on the Toronto stock exchange (TSX) is not fixed. It varies based on the nature and complexity of transaction, the type of business and TSX listing requirements. You can get an estimate of the fee, and not an over-the-counter listing price. For this, you'll have to wait until you complete all the formalities of listing your company on TSX.
What do you think? Is this listing fee optimal? Any feedback will be appreciated.