Mexican Stock Exchange Listing Services
The Mexican stock market has operated for 85 years, and although it is the second largest in Latin America, second only after Brazil, the net asset value of Mexican companies listed on the nation’s 2 exchanges is only US$400 billion. This situation has created a huge chasm between available investment capital and investment options. There is actually more money seeking investment vehicles than are available. This makes the Mexican Exchange a viable way to get money.
Enter the Mexican Stock Exchange SIC (International Quotation System). Although the parallel can be drawn between the U.S. system of American Depository Receipts (ADR’s), it has differences in the details, while serving the same purposes. The fundamental differences being that:
1) Foreign companies can easily list their stock on the SIC in Mexico in a matter of weeks and the symbol is the same as the natively traded company, and;
2) There is no direct capital deposit necessary. Mexican brokers act as local market makers from Mexico and go directly into the Native Market to buy and sell stock, representing their local clients. A perfect example is Apple. APPL is listed on the Mexican SIC as “APPL” because it doesn’t trade in Mexico, however it is traded from Mexico and made available to Mexican investors. Mexican citizens can not open accounts outside of Mexico and brokers can’t sell stock unless it is listed in Mexico. Ergo, APPL trades millions of dollars every day from Mexico. The volume of Mexican trading shows up in the Nasdaq market.
Hundreds of foreign (mostly U.S.) companies are listed via the SIC, and they are actively traded. A foreign company with a Mexican SIC listing is quoted in Mexican (MXN) pesos and can be deposited in a Mexican brokerage account. Its a certain way to find money.
As the Mexican economy becomes stronger, Mexican brokers are actively seeking investment alternatives and opportunities for their clients, however are limited to only offerings in Mexico. This is why companies like Apple and Google trade hundreds of thousands of shares daily through the Mexican Exchange SIC system. Mexican brokers are now looking toward micro and small cap opportunities to add to their clients’ portfolios as a way to increase overall return while earning higher commissions.
As competition increases for public companies to attract shrinking investor margins, CEO’s and investment bankers are looking outside the standard paths for growth capital. For small and large public companies, the Mexican exchange is inviting and the financial services community is excited to list new opportunities on the Mexican SIC.
Open your company to one of the most exciting growth markets in the world.
Company can list on the BMV as an SIC in a matter of weeks:
- Comparable to an ADR
- Simple Fee for listing
- No stock for capitalization necessary
- Quick listing