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Alternext, the tailor-made market for small and midsized companies, was inaugurated today in Amsterdam with first trading in the shares of The Member Company (TMC).
TMC is a secondment agency that places experts in the areas of embedded software, ERP software, industrial and field service engineering, physics and mechatronics with leading high-tech companies and manufacturers in the Netherlands, Belgium and Germany. Approximately 502,933 shares were placed with investors at a price of €12.74. Based on the total number of 3.3 million shares, total market capitalisation of TMC amounted to €42.1 million.
Alternext was specially developed to offer small and medium-sized enterprises efficient access to the capital market, enabling them to fund further growth, innovation and job creation. For investors, Alternext offers transparency and protection.
“Small and medium-sized enterprises, for which Alternext has been specially created, are vital to the Dutch economy. They are the motor that drives the economy. That’s why I’m happy you have chosen Alternext, as it means you are supporting Dutch businesses,” said Joop Wijn, Dutch minister for economic affairs, on Friday before sounding the gong to herald the start of trading in TMC shares.
The Confederation of Netherlands Industry and Employers VNO-NCW (VNO-NCW) and the Dutch Federation of Small and Medium-Sized Enterprises (MKB-Nederland) have asked the Dutch government for tax breaks for the new market. “Enterprises need to be able to access risk capital more easily. They will be able to do so if Alternext offers tax breaks to private investors that invest in Alternext companies,” said Bernard Wientjes, chairman of VNO-NCW, and Loek Hermans, chairman of the Dutch Federation of Small and Medium-Sized Enterprises, in a joint public document entitled ‘Holland can win’ (Nederland kan winnen).
Joost van der Does de Willebois, CFO and member of the Managing Board of Euronext N.V. said, “We are happy that TMC has joined Alternext. Alternext is the best way for ambitious small and medium-sized enterprises to access capital.”
Martine Charbonnier, Executive Director Listing and Issuers at Euronext N.V. said: “Now running in Amsterdam, Brussels and Paris, Alternext has positioned itself as the Euronext market of reference for small and medium-size business.”
Alternext started in Paris in May 2005 and was introduced in Brussels one year later. It has enjoyed great success and the support of a wide variety of national institutions in both France and Belgium, where it currently includes 65 companies with a combined market capitalisation of €2.6 billion. The Alternext index, which comprises all the companies on the alternative market, has risen 22% since it was launched on 4 September 2006.
The IPO barometer developed by Deloitte as an annual measure of interest in IPOs among fast-growing enterprises reveals that there is also a great deal of interest in Alternext in the Netherlands. As many as 60% of those currently considering a floatation said they would prefer to have their shares traded on Alternext.
Alternext’s arrival has been welcomed by many Dutch institutions, including the ministries of finance and economic affairs, VNO-NCW, the Dutch Federation of Small and Medium-Sized Enterprises, and the Dutch Investors' Association (VEB). Within the financial sector, leading Dutch investment banks (Rabobank, ING, Fortis, Kempen & Co, NIBC and SNS Securities) and specialist agencies (Amsterdams Effecten Kantoor, First Dutch Capital and KPMG Corporate Finance) have pledged to advise businesses about Alternext and act as sponsors if requested.
