Last updated:
Even though the Company must prepare itself to become a public Company, given the more simplicity of the process and the lower requirements applicable to the admission to trading on an MTF market, the planning phase will mostly focus firstly on assuring the IPO is the best option for obtaining the intended financing and, if so, assuring the Company’s shares will generate interest from investors.
Please refer to section ‘3.1.1.1. Planning’ for further information regarding the considerations of the planning phase of an IPO.
3.1.2.1.1. Eligibility criteria
When choosing one of the MTFs for admission to trading, there are no requirements regarding:
Additionally, the free float (i.e. dispersion of shares amongst the public) requirements for MTFs are much lower when compared with the regulated market, which facilitates the admission to trading, as well as makes it easier to maintain higher control stakes in the Company.
Requirements to listing on the MTF’s markets operated by Euronext are the following:
Despite the above, Companies must have into account that lower free floats will often imply lower liquidity of the shares. Accordingly, to guarantee investors’ appetite for the Company’s shares the Offer size (and correspondent free float) must be carefully chosen.
3.1.2.1.2. Financial Accounts
When choosing an MTF for the admission to trading, you won’t need to adapt your financial accounts to a different accounting standard.
Requirements to listing on the MTS’s markets operated by Euronext are the following:
3.1.2.1.3. Appointment of Advisors
When choosing the MTF markets your Company and/or selling shareholders will only need to hire a Listing Sponsor – mandatory for the MTFs operated by Euronext – that will help to navigate the IPO process and assist you with the interactions with the Stock Market Operator.
Nevertheless, advisors may be very helpful and beneficial to assist the Company in the IPO process, develop marketing efforts for the distribution of the shares, including organizing roadshows of the Company’s management with investors. The scope of the job of the advisors and, at the limit, the need to hire advisors (other than the Listing Sponsor) will depend on your Company’s internal legal and finance capabilities and resources, the size of the offering and the level of marketing efforts required.
Recommended reading: 3.1.1.1.3. Appointment of advisors – information on the considerations that must be made before appointing advisers.
