This document concisely sets out the fundamental aspects that a company should consider when it decides to be quoted on the Latibex, the Euro Market for Latin American Stocks.

The process of entering this Market has been designed to be simple, fast and cost-free for companies.

• The security must be listed previously on a Latin American Stock Exchange.
   
• The capitalisation (market value) of securities must be greater than 300 million euros.
   
• A commitment to send information in the same manner and at the same frequency as that despatched to regulating bodies in the country of origin. 

There is a special notice especially dedicated to requirements applicable to the quotation of Latin American securities. (Notice 5/1999).

• A formal application to include securities on the Latin American Securities Exchange ( application form) 
  

• The granting of a contract with a "link entity" of your choice, and which can authorise the tying up of securities in the country of origin, include securities represented in the Spanish settlement and registration system and handle dividend payments, return of contributions, etc.

If no agreement exists between the Central Depositories, the contract may be replaced by an application to the Central Depository in the country of origin to use the connection the latter may have established with the Spanish SCLV. (Connection procedures between settlement systems) . These agreements are at present available for Argentina and Brazil.

• All economic-financial information which may have been presented to the regulatory bodies in the country of origin in the previous financial year and in the months which have elapsed in the current year prior to presentation of the application. The information should not include any adaptation of accounting standards. It is thus sufficient to send a copy of available information for investors from Mexico, Argentina, Chile, Brazil, etc.
  

  If the security is also quoted on other international Stock Exchanges, the information handed in to these markets' regulatory bodies (e.g. NYSE/ SEC, etc.) should be sent.

• Copy of the current Statutes of the company.
  

Once all the documentation has been presented, the Latibex Board will study the security's application to be listed.

Judging by the experience of other companies with respect to the time involved in the listing authorisation process, this period is very short: two weeks perhaps being sufficient. The delay is sometimes longer due to the need to seek the best first trading date for commencing the contract, which in practise involves the elaboration of a Communication Plan which basically involves the presentation of the company in Madrid to the Spanish financial community (the main Spanish institutional investors and media groups). This means that the company's relevant directors should be present at the above.

Carrying out a public share offering is not a requirement as such in Latibex. However, the definition of a strategic plan to create liquidity and a sound base in the market is considered preferable. This plan may involve the availability of shares to lend or making a certain amount of securities available to offer as counterpart to a broker or bank in Spain, in the initial period at least. A  share placement among institutional investors would be a simple alternative and would serve to spread the security inicially.

Even if no public offering ( PO ) is necessary it would still be the ideal solution to guarantee a good level of liquidity from the beginning.( Procedures for Public Offerings)

The listing and subsequent permanence of the company on the Latibex shall not involve any  costs for  the issuer with respect to this market or the Spanish Central Depository (SCLV). The only cost to bear  in mind, should this be the case, is that of the link entity, which can be negotiated

The information that the company must supply to the Latibex shall be the same that is presented to Stock Exchanges and/or regulatory bodies in the markets where it is quoted. This information should be supplied on the same date as other markets and shall contain the same information.

The information can be grouped into two areas:

• Periodical information

  • Annually and referring to the company's individual and consolidated financial statements: Annual accounts, Management Report and Auditor's Report for each financial year closed.
  • Quarterly: results and other relevant information.

• Relevants Facts

  • It will be necessary to make public all information (both economic and legal) which may affect the quotation.

If you require more detailed information on this subject please telephone 34 91 589 26 81 or e-mail: info@latibex.com