The Admission Committee of the Mercado Alternativo Bursátil (MAB) has submitted to the Board of MAB a favourable assessment report on the eligibility of Zinkia for admission to the market’s segment for Growth Companies, following a thorough review of all the information presented by the company. For the share offering to take place Zinkia will need the definitive approval by the MAB’s Board.
The Informative Report of Zinkia - a Spanish company that specialises in producing and managing brands on an international scale and also the creator of the cartoon character Pocoyó – is already available at http://www.bolsasymercados.es /mab, where visitors can find information about the company.
MAB thus extends its reach to enterprises that seek financing and intend to boost their stocks’ liquidity, enhance their visibility among the investors and which up to now have not considered a stock exchange listing due to the requirements and procedures a listing involves. MAB offers a financing alternative for Growth Companies and a diversification alternative for investors.
MAB’s segment for Growth Companies, promoted by BME to meet the demands of certain shares which, due to their specific features, require special treatment, has the approval of the Spanish stock market regulator, CNMV. The market relies on the work of 21 Registered Advisers who assess the eligibility of candidate enterprises to list on the Market and assist them to produce the information required at any time.
The preparatory work carried out by MAB over the last few months has led to the identification of 5,000 enterprises in Spain which, based on their size and turnover, are eligible for listing on MAB and, through it, on the stock market.
SMEs account for 99% of all enterprises in the country and 65% of Spain’s GDP and they employ 80% of the labour force. Support for this type of enterprise is especially timely given the current circumstances, which make it more difficult for enterprises to have access to credit and make them more vulnerable to the negative impact of the financial downturn.
By having their shares traded on MAB, these enterprises will be able to raise capital for new projects, obtain an objective valuation, expand their shareholder base, allow current investors to sell their shares and rely on a new instruments to boost the liquidity in their shares.
With the introduction of Zinkia, the new segment for Growth Companies joins the SICAV segment and the Venture Capital Enterprises segment. Currently there are 3,300 enterprises successfully listed on this market.
As stressed in the authorisation agreement of the Spanish Cabinet Meeting, the creation of MAB’s segment for Growth Companies "makes it possible for small and medium enterprises to gain access to capital through the stock exchange".
The development of MAB should provide small capitalisation enterprises with additional benefits. This could be achieved by introducing stricter management practices, enriching its corporate culture and introducing greater transparency and enhanced visibility and projection vis-à-vis the different economic and social agents.