Alternext is a stock market in the Euronext Paris system that specialises in SMEs in the Eurozone. Antevenio, the first Spanish company to be listed on Alternext, has been a pioneer in this market. The Law Club recently hosted a lecture on this peculiar phenomenon.
The first speaker, Nathanäel Mauclair of Euronext, explained how Alternext became the most attractive market for SMEs in the Eurozone. 'Normally it is hard for small and medium-sized companies to access securities markets', he said, adding that this difficulty had been overcome by Alternext, which opened in France in May 2005 and in Belgium and the Netherlands the following year. It is also expected to open soon in Portugal.
After two years of operation, Alternext has a market capitalization of 5.4 billion euros, with approximately 100 listed companies, four of which are foreign (from Canada, Italy, Spain and the United Kingdom). In 2007, the average offering price of the companies listed on Alternext is 13.7 million euros. Investors in this stock market have come from 14 different countries. According to Mr. Mauclair, the volume of business on the market has multiplied by two and a half with respect to figures from 2006. He concluded that 'Alternext has achieved its goal of attracting companies valued at between 20 and 500 million euros'.
Josué Novick of Antevenio then took the floor to explain his company's reasons for going public on Alternext: 'Antevenio is a leading Spanish company in advertising services and direct marketing. We decided to go public in order to finance growth'. This decision, he said, 'brought the company greater visibility, due to the media attention it received, which in turn has helped us attract and keep talent, customers, suppliers and partners'.
He explained the company's decision to go public on a French market: 'In the Spanish market, it is impossible for a medium-sized company to do an IPO'. He then discussed the factors that attracted the company to Alternext: 'It is a Eurozone market that lists 18 Internet companies. The costs are much lower than those of the London Stock Exchange (the other option we considered). Also, Alternext offered the possibility of doing a public offering regulated by the AMF, the French securities regulator'.
In the IPO, the company sold 25.93% of its share capital after the public offering for a total of 6.7 million euros. 'It went very well', said Mr. Novick. 'We invested a lot of money in publicising the IPO. We attracted 4,500 individual investors and 39 small-cap funds. These are spectacular numbers for such as small company'.
Mr. Novick concluded that the IPO had been an excellent experience, considering that two months later the company made its first acquisition: a small company called Netfilia. The major advantage of using Alternext, he said, was 'the large number of investors from different countries'.
The next speaker was Julio Veloso, a lawyer with Rodés & Salas, who discussed the legal aspects of going public, in particular the obstacles to launching an IPO on Alternext: 'The process is long - usually at least six or seven months - and you have to meet the requirements of the French laws in order to be listed there'.
The fourth speaker was Peter Houdelet of BDO Audiberia, who noted that 'all companies that decide to enter a securities market have the right to equal opportunities, so SMEs should be no exception'. He added: 'Any authorised EU organisation may be used to enter any European market', though he acknowledged that companies had to meet the requirements mentioned by the other speakers to enter a specific market.
Mr. Houdelet cited differences between the Spanish accounting criteria and the IFRS, such as 'the elimination of initial start-up expenses, and the appraisal of the commercial establishment and other assets at a reasonable value'.
The last speaker was Antoine Rimpot, General Manager of Avenir Finance Corporate, who listed the general advantages of entering Alternext: 'Obtaining more capital for the future development of the company, increasing visibility and brand image, and increasing the motivation and loyalty of entrepreneurs'.
He then explained the four steps to entering Alternext: first, preparation, 'which involves settling legal matters, developing a business plan and auditing the accounts'; second, the selection of partners; third, passing the controls established by the AMF; and fourth, establishing the public offering price and strategy.
Programme
The Law Club is organising a conference on the innovative process of taking a small or medium-sized company public on an alternative stock market in order to obtain financing for international expansion.
The speakers will discuss the case of Antevenio, the first Spanish SME to go public on a French stock market as a means of obtaining financing.
Alternext, Euronext's fast growing junior market for small and mid-caps, is holding its first presentation in Barcelona. Alternext was created in 2005 by Euronext to meet the needs of small and midsize companies seeking simplified acess to the stock market. Alternext's streamlined listing requirements and trading rules are suited to the size and business needs of small and mid-cap firms. The rules also ensure investor transparency. With its special listing procedures, a market model designed to enhance trading and list of sponsors that assist companies throughout their life on the exchange, Alternext is expected to develop rapidly in the Euro zone. Today, Alternext has a remarkable record: 95 listed companies for a total market capitalization of Eur 5.05 billion.
Welcome and introduction:
Antonio Delgado, President of the ESADE Alumni Law Club.
Speakers:
Nathanaël Mauclair, International Listing, Euronext
Peter Houdelet, Partner, BDO Audiberia
Julio Veloso, Partner, Rodés & Sala Abogados
Antoine Rimpot, Managing Director, Avenir Finance Corporate
Joshua Novick, President, Antevenio
Moderator:
Antonio Delgado, President of the ESADE Alumni Law Club.
Date, time and venue:
Wednesday, 4th July 2007
7.00 pm
ESADE Building 1 - ESADEFORUM
Av. Pedralbes, 60-62
Barcelona
For more information:
ESADE Alumni
Tel: 902 420 020
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