Italy launches Mercato Expandi

Italy’s Borsa Italiana is encouraging the funding of small cap companies with the launch of Mercato Expandi. The Mercato Expandi is designed for small cap companies operating in traditional sectors with consolidated positions in their relevant markets that present a track record of positive financial results.

The market offers less stringent requirements and a quicker listing process compared to the Nuovo Mercato and the MTA, its counterparts on the Borsa Italiana. The minimum capitalisation for listing on the market is €1m and the minimum free-float requirement is set at 10%, with a minimum turnover of €750,000.

For flotation purposes, the publication of at least two annual financial statements is required, including the last set of certified accounts. The company must, for the last two financial years, post a consolidated ordinary profit and a positive individual and consolidated net result as well as a ratio of net financial debt to consolidated gross operating margin of less than four. The net result for the last financial year must also be at least €100,000.

The exchange is expecting its first IPO in the next two weeks. Green Vision is a spinout of the already listed fashion brand Mariella Burani. The company is not VC-backed but Marina Maddaloni of Borsa Italia says the exchange has around 80 companies interested in listing and at least 30 of these have venture backing.