Rule change fast entry large IPOs
After adopting general rules on the treatment of IPOs in June 2002, the Euronext Indices Steering Committee has decided to approve an additional rule which will see to quicker admissions of newly introduced large companies to the Euronext 100 index.
The Rule change reads as follows (new texts are underlined):
1.3 The Euronext 100 Index only includes securities which are listed on Euronext. Newly listed stocks must trade at least 40 days at the time of the periodic assessment before becoming eligible. A newly listed stock could qualify for fast entry at the next quarterly review if its ranking in terms of market capitalisation at the time of the periodic assessment or at the time of the IPO if this occurs after the periodic assessment date, is 50 or above. If a company qualifies for fast entry the liquidity test of article 1.5 will not be applied. If doubts arise on the liquidity of the stock, the compiler may decide to defer the possible inclusion to the following review.
This rule change will come into effect on April 1st , observing the notice period. This means that the rule will be applied to IPOs that occur after April 1st 2003.
The Euronext 100 Index and Next 150 Index have been published since 2 October 2000. They are made up of the 250 securities with the highest market capitalisations traded on the official markets of Euronext. In order to be included in the indices the securities must meet liquidity criteria that are specified in the rules of the indices. Euronext Indices B.V. is the compiler of the indices under the supervision of the independent Euronext Indices Steering Committee.
