Alternext, the market of Euronext - a subsidiary of NYSE Euronext - tailored to the needs of
small to medium-size companies, is celebrating its second anniversary this month, having
opened for business in May 2005.
Today over 90 companies are listed on Alternext, with market capitalization totalling EUR 4.8 billion Just two years from launch, Alternext has become the benchmark for small and medium-size companies. With operations in Paris, Brussels and Amsterdam, it now lists 93 SMEs, including four from outside the Euronext zone. Altogether market capitalization comes to EUR 4.8 billion, for an average per company of EUR 52 million.
Most companies listed on Alternext report annual revenues of from EUR 5 to EUR 30 million. They cover a wide variety of sectors, from industry and technology to consumer goods and services, healthcare, utilities and basic materials.
Two years on, Alternext is a preferred source of financing for SMEs keen to expand and raise their profile. Altogether, the market has enabled companies to raise some EUR 875 million from listings as well as secondary calls, including capital increases, warrants, convertible bonds, and more.
Since January 2007, individual listings have raised an average of EUR 11.4 million each, which is 30% more than last year, confirming the depth of the market and the active presence of investors.
Launched in September 2006, the Alternext All Share index based on all stocks listed on Alternext has gained 45% since January 20061. It is an invaluable management tool for funds
specializing in small and mid-caps, and a vector for promoting listed companies to an everwidening financial community.
In addition to issuers, Alternext brings together a group of shared interests based on investors and intermediaries. Many investors from 11 countries are now actively involved, including several major international players.
In addition, there are currently more than 60 intermediaries with the status of listing sponsors, charged with assisting and advising companies on listing and at every stage of their relationship with the market.
The shift to continuous trading in January 2006 gave liquidity a sharp boost, as did the introduction in September 2006 of liquidity providers and designation of Alternext-listed shares as fully eligible components of investment funds at the beginning of 20072. On average, over EUR 10 million change hands on Alternext every day - 2.5 times the 2006 figure, with one in two companies now traded continuously.
Martine Charbonnier, Euronext's Executive Director in charge of listing and issuers, comments: "In two years, Alternext has won its place as a market uniquely suited to the needs of small and medium-size business seeking financing on the stock market. And it will build on this success to attract a steadily rising number of companies - in twelve months' time, we expect to see some one hundred more a year - to become the eurozone benchmark for the mid-cap segment. The NYSE Euronext t e-up and accelerating deployment of international strategies will reinforce this aim."Â -http://www.euronext.com
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