An initial public offering is a strategic decision for the company, but also a decision reflecting sound management of the entrepreneur’s assets, creating long-term value.
The stock exchange welcomes companies from all business sectors. A company seeking to go public simply needs to be able to meet the transparency requirements expected by investors and offer attractive prospects.
The recommended legal structure is the public limited company (*société anonyme*). It may be managed by a board of directors or by an executive board and a supervisory board.
Euronext offers three market segments:
> 20M€
This market targets highly structured companies possessing the financial and human resources to meet the requirements of international investors.
Euronext is divided into three segments. Segment A comprises companies with a market capitalization exceeding €1 billion; Segment B includes stocks valued between €150 million and €1 billion; and Segment C covers those with a market capitalization of less than €150 million.
We recommend a listing on Euronext for companies wishing to raise more than €20 million and benefiting from international exposure.
> 2.5M€
This segment caters to SMEs of all sizes and across all business sectors. It is ideally suited to mid-sized companies looking to raise funds to finance their growth.
This market primarily targets companies with annual revenue exceeding €5 million and positive earnings. The minimum fundraising amount is €2.5 million.
Simplified access
It welcomes companies of all sizes wishing to take advantage of a market for acclimatization.
While the lack of regulation makes access very simple, it conversely limits fundraising, which tends to be modest.
The Company must appoint a Sponsoring Broker and produce three years of audited financial statements (consolidated, if it is a group) prepared in accordance with International Financial Reporting Standards (IFRS).
A listing on Euronext takes approximately 4 to 6 months, depending on the complexity of the company’s structure and the availability of financial statements.
Listing on Euronext is carried out via a public offering. The issuer must make available to the public a number of shares representing at least 25% of the Company’s capital, or 5% if this represents less than €5 million. This procedure requires the production of a prospectus subject to prior approval by the AMF.
Periodic information is information disclosed to the AMF and the public by issuers at regular intervals—notably on an annual or semi-annual basis.
Annual publications:
Semi-annual and quarterly publications:
The half-yearly financial report must be published within three months of the end of the first half of the financial year. Since the Law of 30 December 2014, companies are no longer required to publish quarterly financial information. However, issuers may still choose to publish such information voluntarily, or even publish quarterly financial statements. Furthermore, issuers must handle this sensitive information with caution, given their obligations regarding equal access to information and the disclosure of inside information. In this context, to best guide issuers in their decision on whether or not to publish quarterly financial information, the AMF has issued a recommendation designated DOC-2015-03.
Continuous disclosure entails an obligation for all issuers with listed securities to publicly disclose any inside information as soon as possible. This obligation is primarily set out in Regulation (EU) No 596/2014 of 16 April 2014 on market abuse. Pursuant to Article 17(1) of that Regulation, it applies to:
Access to Euronext Growth is relatively straightforward for SMEs. The company must first appoint Allegra Finance as Listing Sponsor, who will manage the entire listing process through to the final day.
The company must produce two years of financial statements (consolidated, if it is a group). The Listing Sponsor conducts due diligence, issues a certificate, and prepares an information document for the public.
Listing on Euronext Growth takes approximately 4 to 6 months, depending on the complexity of the company’s structure and the availability of financial statements.
Admission to trading on Euronext Growth takes place via two procedures:
Public offering: The proposal involves distributing securities to the public with a value of at least €2.5 million. This transaction may take the form of a capital increase, a sale of existing securities, or a combination of both. This procedure is subject to prior approval by the AMF of the information document prepared by the Listing Sponsor, which then becomes the IPO prospectus.
Direct listing: admission is granted following a private placement—carried out within the twelve months prior to admission—with qualified investors involving a capital increase of at least €2.5 million. The securities must be distributed among at least three holders to be eligible for Euronext Growth. The information document prepared by the Listing Sponsor is referred to as an “Offering Circular.”
Upon the admission of the shares to trading on Euronext Growth, the Company undertakes to comply with all rules applicable to Euronext Growth, including in particular:
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