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Deutsche Börse admitted the 100th company to the Entry Standard on Thursday with the IPO of m4e AG. This makes the Entry Standard, launched in October 2005 as an entry segment for SMEs, continental Europe’s largest alternative capital market.
“The admittance of the 100th company is testimony to the high degree of acceptance among issuers and investors. The success of the Entry Standard shows that it was right and necessary to create an entry segment that is particularly attractive for small and medium-sized companies with its flexible and cost-efficient capital market access,” said Rainer Riess, Managing Director Market Development.
The Entry Standard has exhibited high liquidity from the outset, and shows the considerable interest among institutional investors, in particular. The segment is also characterized by a broad spectrum of different sectors. Issuers include companies from the industrial, telecommunications, pharmaceutical & healthcare, IT, renewable energy, nanotechnology, software and financial services sectors, which chose the Entry Standard as the transparency standard because of the low capital costs.
Four companies have already been promoted from the Entry Standard to the more highly regulated Prime and General Standards. Over 90 designated sponsors support liquidity, and 23 banks now support companies in the Entry Standard.
The issue price of m4e AG (ISIN DE000A0MSEQ3) was €6.50, the initial price stood at €6.90. Support during the IPO came from VEM Aktienbank AG, with MWB Wertpapierhandelshaus AG acting as lead broker.
The segment is primarily designed for qualified investors who are able to assess opportunities and risks in a less regulated market segment. Significant transparency requirements and rules of conduct for investor protection that must be upheld on organized markets like the Prime Standard and General Standard do not apply to the Entry Standard.
