PRIVATE PLACEMENT EXCHANGE ON ARUBA
Leading Dutch business journal “NRC Handelsblad” article on AESX and PPDAQ
1st August 2006
*Start capital on an Aruban exchange market
There is a capital market revolution going on in Aruba. Small start up companies can now raise funds at the electronic stock exchange platform AESX.
The scarcely lit law office of Andin Bikker is situated opposite the azure blue Caribbean Sea. Here, on the outskirts of Aruba’s capital Oranjestad, Bikker thought up his brainchild AESX; an electronic stock exchange for micro exchange markets for small and new businesses, of which the private placement exchange PPDAQ is active. “PPDAQ”, Bikker says in his cool air conditioned office, “is unique because in principle everybody with a well-substantiated idea is welcome. We are operating the micro-micro market, which fits Aruba and Curacao.” The lawyer (36) has seen many Aruba start up companies go bankrupt. To get start up capital most of them mortgaged, at the locally applicable high interest rate, their house. “When things went wrong they were out on the street.”
This also happens in other parts of the world. That is why PPDAQ aims worldwide to provide services to small businesses that lack of funding, and are looking for investors. An ordinary public listing is unaffordable. And even Alternext, the exchange market for small and medium-size businesses that the European stock exchange organization Euronext launched last year, is for many start up companies a bridge too far. “To qualify for Alternext a company must exist for at least two years”, Bikker knows. “That is why we aim at the market one level lower; a pre-phase of the average public listing market.” A standard listing with PPDAQ would cost between 15,000 and 30,000 dollars (12,000 and 24,000 Euro). As basic information for the potential investor every admitted company must submit a prospectus. AESX Platforms is in fact also listed on PPDAQ.
The Aruban lawyer has always been interested in the capital market. Aruba initially offered sufficient other challenges, however. For instance Bikker as a lawyer was instrumental in breaking the monopoly of the Aruban state-owned telephone company Setar. Next, when Aruban politics to his taste did not offer sufficient choices, he founded the as yet extra parliamentary party Democracia Real. Now that the elections are over, he spends most of his time in the realization of the micro stock exchanges. Besides PPDAQ AESX Platforms exists of five other micro stock exchanges: Dutch Caribbean Exchange (DCEXCH), Caribond, RegSX, UKDX and ArubaX. They are technically ready, but not yet operational. They are waiting for companies for whom the exchange in question is suitable for listing. There is also the possibility to lease the micro stock exchange software of AESX. “In those small markets”, says Bikker, “it is better that a local company make the introduction than that we, as a relative outsider, must intervene.”
The micro stock exchange software comes from the British Comdaq. Through the grapevine Bikker got in touch with that company that has an internet commodities exchange on which merchandise as coffee, sugar and textile can be traded. “If they did not get into a joint venture with us we could never have created AESX”, he says, “because their software was unaffordable for us. But for Comdaq we also serve as a showcase; i.e. ‘Look what these guys in the Caribbean are doing’.” By now PPDAQ is hot. According to Bikker there is great demand for the local blue chip Aruba Aloe, the burn cure product made of the plant that does so well in the arid climate of Aruba. There is also a growing interest for a local airline that is momentarily preparing a flotation on the platform. Furthermore the plan for a ferry service between Oranjestad and San Nicolas can count on the interest of investors via listing of a San Nicolas Fast ferry project.
The company of former personal assistant of Elvis Presley, Marty Lacker, recently had to be removed from the micro stock exchange. Lecker inherited a private collection audiovisual Elvis material that he wanted to materialize by means of selling DVD’s. His group sought a starting capital of half a million dollars, but has not yet succeeded therein. “He will probably try again when the securities broking office is operational”, says Bikker.
That securities broking office is set up to bring the companies on PPDAQ to the attention of financial backers. American stock traders are currently training about ten Arubans to approach qualified investors, by phone or otherwise. The infrastructure of the Aruban timeshare industry (selling of vacation apartments that can be used by different occupants throughout the year, red.) is the basis of the selling system. “As such we wish to pay commission to the people who bring us investors”, says Bikker. “To join us costs relatively little; one thousand dollars, the costs of which for a qualified investor can have a clear picture of.”
*Free Translation of Dutch NRC Handelsblad article August 1, 2006, with slight corrections / updates for mere informational purposes, as per August 2, 2006. Source: PPDAQ (Press).
