The FINANCIAL — Euronext announced on Septembe 4 the opening of new offices in five European cities outside its core markets – in Germany (Frankfurt, Munich), Italy (Milan), Spain (Madrid) and Switzerland (Zurich) – to assist Tech companies in developing their business on a greater scale through capital markets.
The countries were selected for their growth opportunities in the Tech sector.
Recent record-breaking years have demonstrated that Europe is becoming a critical location for pioneering innovations. To make Europe a world-wide hub for innovation, Euronext is committed to help bridge the late-stage funding gap, an ongoing obstacle for European Tech SMEs wanting to grow at a global level. Euronext also offers a solution to the liquidity gap faced by business angels and venture capitalists eager to have an attractive capital markets option in Europe to sell their investments in European Tech companies, according to Euronext.
Euronext will leverage its expertise and the initiatives successfully implemented in its core domestic markets in recent years. With currently more than 330 listed companies operating in Technology, Media & Telecommunications, Cleantech and Life Sciences, representing a consolidated market capitalisation of more than €50bn, Euronext has the largest number of Tech SMEs in Europe and stands as the world’s largest listing venue for Medtech and second largest for Biotech. Well underway to becoming the reference listing venue for Tech companies in Europe, Euronext has had more than 80 Tech companies go public on its markets since 2014, of which eight were from the four new countries in Europe.
Euronext’s representatives in the new European countries will use their strong expertise and local networks to help entrepreneurs better explore their financing options, and assist with access to capital markets. They will be supported by a new European team of analytics and communication experts. The newly appointed team is committed to working cooperatively with all the local ecosystem players.
In the coming months, Euronext will extend the following Tech initiatives into the four new countries:
a unique pan-European educational programme dedicated to helping executives of Tech SMEs better understand how to use capital markets and the challenges of an IPO. Launched in 2015, this programme enables entrepreneurs to explore the opportunity of listing in parallel with their specific business projects, and to anticipate IPO-related issues. This programme will be up and running by September 2018 for companies from Germany, Italy, Spain and Switzerland.
Equity research programme: Euronext’s partnership with Morningstar, a leading provider of independent investment research in Europe, to increase the coverage of Tech SMEs by financial analysts. The programme will provide up-to-date synthetic analysis on Tech stocks listed on Euronext, expand the pool of potential investors, and enhance the sector’s visibility.
Tech 40 Label and Index: this initiative increases the exposure of Tech companies listed on Euronext and provides access to a greater scope of services including investor roadshows and a dedicated index.
In 2018, Euronext will deploy two new programmes specifically for European Tech SMEs:
Get to know your investors: following their listing, companies will benefit from in-house market intelligence services for six months. The services will be tailored for their business and will help them develop a better understanding of their investor base.
Trade & Leverage: following their listing, companies will benefit from investor access initiatives sponsored by Euronext, such as equity research, investor events and forums. Market leading providers will be pre-selected to offer the best results and services at the best price.
Stéphane Boujnah, Chairman of the Managing Board and CEO of Euronext, said: “Consistent with Euronext’s Agility for Growth strategy, we aim to leverage our expertise in successfully financing Tech companies, developed in our four core markets over recent years, to serve selected dynamic markets in Europe. We believe that Euronext is well positioned to support local Tech SME leaders across the continent to bridge funding and liquidity gaps, and contribute to making Europe a global hub for innovation and growth.”