MAB becomes BME Growth
3 September, 2020
- It obtains the SME Growth Market seal, a new category under EU regulation, in Spain denominated Mercado de Pymes en Expansión
- Simplifying the issuer prospectus models and some market abuse regulations
- Highlighting the importance of this BME alternative equity market as a recurring financing formula for smaller companies
As of today, BME’s market for SMEs, MAB, is called BME Growth, following recognition from the Spanish stock market supervisor, CNMV, of the European Growth Market category, in Spain denominated Mercado de Pymes en Expansión. This new category is developed within the framework of the Capital Markets Union (CMU) initiative and is included in MiFID II with the aim of increasing funding for smaller companies via their presence in financial markets.
Joining this category implies that the quality and transparency standards of this market are aligned with those of other European Growth Markets. This recognition also allows the application of less stringent requirements in connection with the obligation to maintain insider lists, as required by the market abuse regulation, and the possibility of using simpler prospectus models to raise funds and move from the Growth Market to the main Board.
"This recognition provides this market with a more international profile and, therefore, greater visibility for its issuers, while also reinforcing its appeal vis-à-vis other European companies”, statedJesús González Nieto-Márquez, General Manager of BME Growth. “Accessing a greater pool of investors will result in greater participation and liquidity," he added.
BME created the Mercado Alternativo Bursátil (MAB) market, now BME Growth, in 2006 as a Multilateral Trading System aimed at small and medium-sized companies, and its operation is supervised by the CNMV. It currently lists 117 companies with a combined market capitalisation in excess of 15 billion euros.
Since its inception, the companies traded on this BME market have raised 4.5 billion and have distributed 479 million euros in dividends and other shareholder remuneration concepts to their shareholders. The index comprising the 15 most liquid companies in this market has increased by 81% since its creation.
Last year the companies listed on this market raised 1.5 billion euros in funding, including new listings and capital increases. In 2019, 21 companies were listed on BME Growth and another five have been added so far this year.