The first year is proof that the idea has been well received. In particular the strategy of being geared directly to Swiss and foreign companies from the life science, IT and microtechnology sectors has met with a positive response from all market participants. The IPOs staged on SWX New Market reflect this approach - six of the listed companies are from the life science sector. The success of such a sector focus has already been borne out by the numerous companies listed in the main segment. The cluster effect attracts international attention as well as a large number of active investors specialising in specific sectors. SWX Swiss Exchange supports efforts to promote the spread of knowhow by organising specialist seminars.
Compared with Europe's other new market indices, the SMNI has made a convincing showing: of the 14 companies listed, 11 are now trading above their issue price.
Of the nine Swiss companies, three are from the French-speaking part of the country. The foreign listings are from Israel, the Netherlands, Austria and the USA. Other foreign candidates have expressed an interest in a listing, including from countries not yet represented.
How will things develop over the next 12 months?
Four more companies have announced plans to mount IPOs in 2000. A current list is published in the Internet.
We expect to meet the announced target of 20 listings by the end of this year, and the candidate pipeline for 2001 is already beginning to fill. The range of lead banks operating on SWX New Market is also steadily increasing.
Other investment banks have recognised the potential for new business that SWX New Market offers. Deutsche Bank, JP Morgan and swissfirst have announced projects.
What has been the experience to date with the rules and regulations?
The additional rules, which correspond largely to the harmonisation rules of the EURO.NM markets, worked well in the first year. The shorter track record required than for the main segment seldom came into play given the average age of the listed companies of 8.4 years. Where requirements specified in the SWX New Market's additional rules differ from the EURO.NM standards, this is for market-specific reasons.
Due to come out in the second year of operation of SWX New Market, the Admission Board is drafting new guidelines for the regulations to facilitate the interpretation and implementation of the relevant articles. The following guidelines are being prepared: Lock-up guidelines and Market making guidelines.
A commentary on Article 15 (Publication of investment research studies) is shortly to be drafted in conjunction with the banks introducing issuers.
