The Mercado Alternativo Bursátil (MAB), created by Bolsas y Mercados Españoles (BME) to meet the demands of certain shares which, due to their specific features, require special treatment, has presented a project for the creation of a new segment for growth companies. The new segment might start operations before year-end.
The aim of the project is to create a market for low-capitalisation companies in search of growth opportunities. A set of regulations, costs and processes are being designed to meet the specific needs of these companies.
The preparatory work carried out by MAB over the last few months has led to the identification of 5,353 companies in Spain which, based on their size and turnover, are eligible for listing on MAB and, through it, on the stock market.
Through this initiative MAB will be able to reach companies with liquidity problems and low visibility among the investing public which, so far, have not considered a listing on the stock exchange due to its listing requirements.
With the creation of this segment BME intends to bring the real economy to the stock exchange and commit itself to this type of companies. The Spanish economy has consistently outstripped the European Union in average terms over the last decade thanks, among other factors, to the thrust and development of its business fabric.
SMEs account for 65% of Spain’s GDP and represent 99% of all companies in the country and they employ 79% of the labour force. MAB’s new segment is a mechanism designed to boost the contribution of these companies to economic growth.
By having their shares traded on MAB, these companies 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.
In order to list on MAB, the share capital of the candidate companies should be fully paid-up and its shares transferable. It should also present IFRS-audited accounts.
The company’s introduction will be carried out by means of an Initial Public Offering / Public Offering for Subscription or a listing. The minimum free-float will amount to € 2 million and they will have to appoint a Chartered Adviser, who will accredit the company’s compliance with these requirements and revise the information filed.
The creation of MAB was authorised by the Cabinet Meeting on 30 December 2005. This new segment joins those created by MAB in May 2006 and the Venture Capital Companies segment, created in November 2006. MAB’s trading system started on 29 May 2006, when the first SICAVs joined the market. Currently there are 3,153 companies listed on this market.
