One year after its launch, Deutsche Borse’s Entry Standard has been established as an alternative market for SMEs with low entry requirements.
“The 66 listed companies, high liquidity, and increasing number of accompanying banks are testimony to the high level of acceptance among issuers, intermediaries, and investors, and reflect the positive response to the market segment,” says Rainer Riess, the MD of Stock Market Business Development.
The companies hail from the technology sector as well as traditional areas, with a focus on real estate, software, and financial services. The total market capitalisation of the companies amounts to around €4.8 billion, with each individual company usually worth around €50 million. Six foreign companies from Switzerland, Austria, Luxembourg, and Canada have also opted for a listing on the Entry Standard. The Entry All Share index, calculated by Deutsche Borse since market launch, has risen by 20 percent since 25 October 2005.
Liquidity has also shown encouraging development. 56 companies use a Designated Sponsor, who secures additional liquidity on the Xetra electronic trading system. The average trading volume and the number of transactions per company is more than twice as high as on other alternative markets in Europe.
In addition, the number of applicants responsible for selecting the companies and monitoring transparency requirements on an ongoing basis has increased to 18 banks and brokerage firms. Entry Standard companies are of particular interest to qualified investors; over 80 percent of IPO volume has generally been placed with institutional investors.
The Entry Standard, General Standard, and Prime Standard allow companies to choose from various listing options according to their respective needs.