The downturn in the equities markets that has now been underway for more than two years has also led to a sharp decline in underwriting activity. And the SWX New Market in particular has felt the brunt of that trend. Since the autumn of 2000, this segment has not witnessed any new IPO take place. In the wake of the Miracle bankruptcy and the segment change of Card Guard, there are now 15 companies listed on the SWX New Market. Numerous Swiss, Canadian, American and Israeli listing candidates with whom SWX is in contact have postponed their initial public offerings. Over the medium term, the outlook is dim for a recovery in the SWX New Market and, consequently, for a pickup in new listings. Thus for the foreseeable future, it will be hardly possible to achieve the critical mass necessary for a stand-alone equity segment of this nature.
The Management Board of the SWX Swiss Exchange has therefore decided to cease with immediate effect all marketing and communication activities under the name of )))"(((SWX New Market)))"(((. However, the marketing acitivities for all issuers of the SWX Swiss Exchange will be continued. Simultaneously, the board has issued an order for the repositioning of all SWX share-trading segments. As a part of this realignment, the regulatory framework and entry hurdles applicable to the respective segments will to the greatest extent be maintained, however efforts will be made to allocate the listed companies into special marketing segments. Decisive in determining the precise allocation will not be regulatory differences, as was previously the case, but instead other criteria such as industry grouping and performance. SWX-listed issuers, along with underwriting banks and the investing public, will be called upon in the formulation of this new concept.
This decision by no means indicates a change in the declared objective of the SWX Swiss Exchange to offer also young companies a platform for obtaining equity capital. The segmentation concept that is to be worked up during the course of the next six to eight months will therefore embrace the following elements:
- A high standard of transparency for listed companies, even though they may only have a brief track record of business operations.
- Sector-specific information and acquisition activities on the part of SWX both at home and abroad, with particular emphasis being placed on healthcare and other growth industries.
- Initiation of measures designed to enhance the visibility of the domestic and foreign companies listed on SWX.
