MAB becomes BME Growth

The Alternative Stock Market (MAB), the SME stock market of BME, has become BME Growth after getting the European seal of SME Growth Market (Market for Expanding SMEs) granted by the National Securities Market Commission (CNMV).

BME Growth is a market focused on small and medium-sized companies of all sectors seeking to expand. The most widely represented sectors are technology, biotech, engineering, telecommunications, energy and real estate (SOCIMI), that has recently joined. A total of 117 companies are currently listed, with a joint capitalization exceeding 15,000 million euros. They are mainly Spanish, but this market is open to all companies regardless of their nationality.

SPACs have become very popular and their figures speak for themselves: 80 SPACs have raised more than 32,000 million dollars in the third quarter of 2020, a record number. The graph below shows that the amount almost quadrupled in the second quarter.

Source: BME Growth

The former MAB was launched in 2006, and it has helped SMEs to finance their expansion plans since its creation. They have raised a total of 4,586 million euros and yielded almost 500 million in dividends and other remunerations. The entry into the European category of SME Growth Market is great news for companies. This recognition gives them a more international profile, facilitating access to capital markets and a competitive improvement in terms of European standards of quality, transparency and liquidity.

BME Growth offers companies many advantages:

  • Growth financing: it provides a recurring source of financing to drive the different expansion stages.
  • Good publicity, reputation and brand image: visibility among clients, investors and stakeholders.
  • Daily trading price.
  • Greater liquidity: access to a higher number of investors.
  • Professionalization: it forces the company to grow on solid ground and well-equipped.
  • A reduced administrative burden: Registered advisers help companies throughout the process.

And what requirements must companies meet to be part of this market?

  • Shares must be issued by public limited companies.
  • Worth up to € 500 million.
  • Transparency: informative documents and 2-year audited accounts.
  • Appointment of a registered advisor to help the company in administrative procedures.
  • Appointment of a liquidity provider: an independent financial intermediary appointed by the company will boost liquidity and encourage trading.
  • Higher number of shareholders:
    • Estimated free-float over € 2 million.
    • Aimed at shareholders with <5% participation.
  • Release of “Privileged information” and “Other relevant information”.
    • Information that may affect pricing must be communicated immediately.

In summary, BME Growth is a market that can get companies off the ground by granting access to capital markets. As we have seen, it offers great advantages, but it requires a very proactive attitude and professionalism at all levels in return.