Paris – 20 May 2015– To celebrate Alternext’s Paris 10th anniversary, EnterNext, the Euronext subsidiary dedicated to promoting and growing the market for small and medium-sized companies, invited listed companies, advisors and investors to a ceremony at the close of trading. Speakers reviewed achievements over the ten years since Alternext Paris was first created to give small and medium-sized businesses easier access to the financing they need.
240 listings to date, raising €4.1 billion
Launched on 17 May 2005, Alternext Paris was designed to meet two challenges: offer SMEs an alternative to traditional IPOs through a process with simplified listing and trading requirements, while giving investors the secure and transparent framework they require. From the start, Alternext Paris has delivered useful and innovative responses to mid-sized companies keen to tap financial markets to finance their growth and business development. The figures speak for themselves: to date, over 240 SMEs have listed on Alternext Paris, raising €4.1 billion—an average of over 20 listings a year.
Simplified access to financial markets for issuers, adapted to investor needs
In ten years, Alternext Paris has succeeded in creating serious momentum: it currently counts 180 listed companies, 45% from outside the Greater Paris region, representing total market capitalisation of €9.6 billion. At present over 20% of total securities on Alternext Paris are held by investors based outside France. The market has welcomed companies from all sectors and has backed notable success stories, allowing issuers to expand, raise their profile, build credibility and promote team loyalty. Last but not least, a true ecosystem has grown up around Alternext Paris, including the creation of ALIST, the association of listing sponsors, in May 2010.
At the same time, Alternext’s rules and regulations have continued to change to meet the needs and expectations of both issuers and investors. One example is the launch in March 2015 of Euronext Private Placement Bonds (EPPB), rounding out Euronext’s existing private placement bond range by extending it to Alternext, and in so doing giving private-sector SMEs—listed and unlisted, rated or not—easier access to bond finance.
Anthony Attia, Chairman and CEO of Euronext Paris, said : “Over the past ten years, Alternext Paris has emerged as the benchmark for small and medium-sized businesses, investors and brokers. Its simple regulatory framework is a perfect fit with the needs of this community and allows Euronext to meet its role of financing the real economy. As one of Europe’s major centres for raising capital, we are constantly working to meet our users’ needs and bring their interests into alignment, as we recently demonstrated by expanding private bond placements to Alternext.”
Eric Forest, Chairman and CEO of EnterNext, added: “Alternext Paris has more than lived up to the trust placed in it, attracting listing candidates from a very wide range of sectors: manufacturing, healthcare, technology, consumer services and many more. While these companies decide to list for many different reasons, all seeking financing for their development projects. Today, as financial disintermediation gathers pace, capital markets are playing an increasing role in financing SMEs. Alternext’s growth is a logical part of this trend.”
At 31 March 2015.