Francois Buisson is the controlling shareholder of Groupe Industrielle Internationale (GII), a major importer of sporting goods in the European Union. GII is aiming for a major expansion project within the next 5 years. One of the objectives of this expansion is to form a major alliance with Axetem as its main running shoe supplier. In short, GII’s expansion plans will entail huge sales revenues for Axetem. To gain additional investors, GII wants to list its company’s stock on the NYSE.
Brian Tobias, Axetem’s CEO, has mandated the creation of a special team at Axetem, Inc. with the aim of helping GII get started on its task of getting listed on the NYSE. Your team is to conduct initial research about the requirements for a non-U.S. firm to obtain an NYSE listing and how a non-U.S. firm can maintain its NYSE listing.
Hint: Start by visiting http://www.nyse.com/, and look for various listing requirements.
Use the available resources to research the NYSE and the divisional cost of capital approach to complete this assignment.