Here below we respond to the most frequently asked questions we get asked from entrepreneurs while analysing the Euronext alternative. ArmanexT´s work begins precisely here, helping to formulate the right questions for each project, and finding the most appropriate answers, with rigor, professionality and experience.
This list does not intend to be exhaustive, neither on the questions nor on the answers, it is rather a quick view on the different topics of interest on a first phase.
Pay attention when reading. In most cases, the known answers are biased as a result of past believes. The new scenario that is opening to your company with ArmanexT and Euronext is substantially different.
We are here you help you. Once read, feel free to contact us to recap these, or to discuss any concern you may have.
It is now time to break wrong myths regarding Stock Markets, and to prepare companies to a new growth and internationalization stage.
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Questions about…
| EURONEXT ACCESS | EURONEXT ACCESS + | EURONEXT GROWTH |
EURONEXT (A/B/C) | ||
|
INITIAL ADMISISON |
Free-float | Not applicable | €1m | €2.5m | 25% or 5% if > €5m |
| Financial Statements | Last 2 years | Last 3 years | |||
| Intermediary | Listing Sponsor | Listing Agent | |||
| Document to be provided | Information Document* (or EU Prospectus in the case of IPOs) |
Information Document or EU Prospectus |
EU Prospectus | ||
|
MINIMUM MANDATORY REQUIREMENTS |
LISTING REQUIREMENTS |
MAINTENANCE REQUIREMENTS |
||||
|
MAB |
EURONEXT |
MAB |
EURONEXT |
|||
| LEGAL DD |
✔ |
✔ |
|
|
||
| FINANCIAL DD |
✔ |
x |
|
|
||
| ANNUAL AUDIT |
✔ |
✔ |
✔ |
✔ |
||
| ABBREVIATED ANNUAL ACCOUNTS |
If applicable |
|
✔ |
x |
||
| COMFORT LETTER |
✔ |
x |
|
|
||
| BUSINESS PLAN |
✔ |
✔ |
✔ |
x |
||
| COMPANY VALUATION |
✔ |
✔ |
|
|
||
| ASSET VALUATION |
✔ |
✔ |
✔ |
x |
||
| AGENT BANK |
✔ |
✔ |
✔ |
✔ |
||
| LIQUIDITY PROVIDER |
✔ |
x |
✔ |
x |
||
| FREE-FLOAT (€2 MILLION, 20 MINORITY STAKEHOLDERS (Not applicable to kin)) |
✔ |
x |
✔ |
x |
||
| CASH DEPOSIT (€150k-€300k) |
✔ |
x |
✔ |
x |
||
| SHARES DEPOSIT(150k-300k€) |
✔ |
x |
✔ |
x |
||
| TECHNICAL LISTING |
✔ |
✔ |
|
|
||
| CAPITAL RAISE, PRIVATE PLACEMENT (DAR, DAC) |
|
|
✔ |
x |
||
| LOCK-UP (1 year) |
✔ |
x |
|
|
||
The different Euronext markets are adapted to welcome from Sociedades Anónimas Unipersonales (single-member corporations), to family-owned businesses, companies with a reduced number of shareholders that do not wish to initially change their shareholding structure (Technical Listing) or the contrary, those companies that seek to raise capital through an IPO.
It is an alternative offered to companies in order for them to list their shares on a Stock Market with the particularity that no shares have to change hands. This contrasts with IPOs, where coinciding with the listing, there is buy and sale share transactions.
No, it is not necessary to change the registered office nor the fiscal residency. The company will remain paying its taxes in Spain.
| EURONEXT ACCESS | EURONEXT ACCESS + | EURONEXT GROWTH |
EURONEXT (A/B/C) | ||
|
INITIAL ADMISISON |
Free-float | Not applicable | €1m | €2.5m | 25% or 5% if > €5m |
| Financial Statements | Last 2 years | Last 3 years | |||
| Intermediary | Listing Sponsor | Listing Agent | |||
| Document to be provided | Information Document* (or EU Prospectus in the case of IPOs) |
Information Document or EU Prospectus |
EU Prospectus | ||
The different Euronext markets are adapted to welcome from Sociedades Anónimas Unipersonales (single-member corporations), to family-owned businesses, companies with a reduced number of shareholders that do not wish to initially change their shareholding structure (Technical Listing) or the contrary, those companies that seek to raise capital through an IPO.
In Spain. Registered office and fiscal residency should not be confused with the market where the shares are listed.
There exists a dual supervision, on one side, that of the regulator where the company is listed and traded and on the other, that of the Spanish Regulatory body (CNMV). In both cases, ArmanexT´s work as Listing Sponsor consists on the supervision, coordination and assistance to the company so all established requirements are met in good time and appropriate manner.
| EURONEXT ACCESS | EURONEXT ACCESS + | EURONEXT GROWTH | EURONEXT (A/B/C) | ||
|
PERMANENT REQUIREMENTS |
Informes financieros anuales | Yes | Informe anual auditado | ||
| Informes financieros semestrales | No requerido | Informe anual no auditado | Informe semestral auditado | ||
| Información confidencial que afecte al precio, lista de personas con información privilegiada, encuesta de mercado | Aplicable (Directiva Abuso de Mercado) | ||||
| Declaracion de transacciones | Aplicable (Directiva Abuso de Mercado) | ||||
| Declaraciones de incumplimiento de umbrales (Detención de capital. ejemplo: derecho a voto) | No Aplicable | Aplicable | |||
| No-lavado de dinero | Aplicable | ||||
| website | Yes | ||||
No, Euronext does not demand a company’s shares to be traded a minimum number of days.
Yes, Private Equity Funds are authorized to invest in companies listed on Multilateral Trading Facilities and maintain their investments without time restrictions.
There is not a minimum size requirement to be met in order to be listed. Access to this market should be considered as a step prior to companies´ expected growth and future needs.
Euronext is the main Stock Market in Europe, and brings together the Stock Exchanges of France, Belgium, the Netherlands, Portugal, Ireland, Norway and a Derivatives Exchange in the United Kingdom.
On Euronext, there are close to 1,500 listed companies from around the world and over 5,000 active investors analysing them. Euronext offers the possibility of being listed on one of its four markets depending on the company´s size, liquidity and expectations.
Euronext has four markets, each of them with a particular focus and admission criteria that allows companies to meet their needs and expectations.
- Euronext Access
- Euronext Access +
- Euronext Growth
- Euronext A/B/C
Also known as Alternative Stock Market, a MTF is a Stock Exchange generally oriented to small and medium-sized companies that seek to expand. MTF have a regulation designed specifically for them, and costs as well as listing processes adapted to their characteristics.
They are newly created markets, promoted by the European Union in its pursuit to bring the Stock Markets closer to European SMEs. They have simplified admission and permanence processes oriented to small and medium-sized enterprises that are homogeneous across all member estates with the objective of facilitating the access to new sources of financing, either with equity or bonds.
No, the different Euronext markets are designed precisely to welcome companies such as Biotech, Start-ups and highly technological firms that do not yet have revenue, EBITDA or profit.
Yes, article 4 of the LEY 11/2009, 26/10 Sociedades Anónimas Cotizadas de Inversión en el Mercado Inmobiliario establishes that “SOCIMI shares shall be admitted to trading on a regulated market or on a Spanish Multilateral Trading Facility or on any other European member state…”
Through any market operator that has the stock registered on its system.
Only if there are shares available for sale.
Yes, Euronext is the greatest combination of markets in the continent. There are close to 1,500 listed companies and over 5,000 institutional investors analysing the markets on a daily basis.
It is an official figure authorized, supervised and regulated by Euronext with a dual function:
-
Accompanying SMEs and SOCIMI in the listing process, ensuring these comply with all requirements established by each market, acting as global coordinator of the process, and ensuring that the information provided by the different advisors is accurate and complete.
-
Ensuring that companies comply with their information disclosure obligations whilst listed on a Stock Market.
The different needed advisors (Auditor, Legal Advisor, Expert Independent Valuator) shall be experienced firms, and with an established reputation regardless of their nationality.
In the case of Spanish firms, Spanish advisors are more commonly used, although this is only a matter of practicality.
Given the variety and diverse typology of companies, it is not possible to determine a costs range at this stage. We remain at your disposal to study your case: info@armanext.com or call +34 911 592 402
Given the variety and diverse typology of companies, it is not possible to determine a costs range at this stage. We remain at your disposal to study your case: info@armanext.com or call +34 911 592 402
Yes, hiring a Listing Sponsor (ArmanexT) is mandatory in most Markets. The Listing Sponsor is an official figure responsible for the coordination of the process. Furthermore, the Listing Sponsor will support shareholders and the management of the company along the listing process.
Once all the necessary documentation is submitted, Euronext will provide a response within 30 days. The time needed to elaborate the Information Document will vary according to the company’s complexity. We remain at your disposal to study your case: info@armanext.com or call +34 911 592 402
Euronext does not require a specific method or valuation model. Each company (depending on their business sector and size) will be valued according to the most appropriate criteria by the Independent Expert Valuator.
Yes, Private Equity Funds are authorized to invest in companies listed on Multilateral Trading Facilities and maintain their investments without time restrictions.
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