As part of its plans, NYSE Euronext has reduced the minimum for private placements from EUR5m to EUR2.5m, and the number of qualified investors from 5 to 3. Placements must take the form of a single operation in a period no more than one year prior to admission to Alternext, down from two years previously.
NYSE Alternext has also set up two segments to better distinguish companies listed by private placement from those listed by public offering. Together these initiatives will enable larger numbers of small and medium-sized businesses to list and raise the capital they need, while giving investors a clearer view of market liquidity.
Continuous trading has been extended to all NYSE Alternext-listed companies with a liquidity provider in the private placement segment, an option that is now available. The spreads that brokers acting as liquidity providers are required to offer have been narrowed, with the maximum reduced from 5 to 4%. These moves will mean greater liquidity for NYSE Alternext as a whole, along with an increase in the number of active investors.
NYSE Euronext has set up ExpertLine, a communication and information platform especially for SMEs that is located in the market surveillance room for European markets at NYSE Euronext in Paris. Opened on November 16, 2009, this facility provides real-time listing and trading data to issuers.
To inform and attract as many investors as possible, NYSE Euronext and Oseo (the public agency supporting innovation and growth at small and medium-size businesses in France) have teamed up to create an innovation index for Nyse Alternext companies. Rounding out the Alternext all share index, this will allow issuers and investors to track performance and trends at innovative companies listed on NYSE Alternext. Component stocks are companies officially recognized by Oseo.
In addition to these measures, NYSE Euronext will continue to play an active role in promoting the new programme and thus helping small and mid-size businesses use the market to secure the funding they need to finance their development.
Ronald Kent, group executive vice president and head of international listings at NYSE Euronext, said: “By deploying concrete measures that fulfil our commitment to promoting NYSE Alternext and its eco-system of issuers, investors and financial intermediaries, NYSE Euronext is reaffirming its concern for small and mid-caps. There can be no doubt that Nyse Euronext markets offer a solution suited to the needs of SMEs seeking capital.”
