Euronext is launching a new index range for mid caps in January next year, as part of a number of changes to improve the visibility and liquidity of these sized stocks. The aim is to give European companies new opportunities to raise capital, says the exchange.
The new range will be float weighted and comprise three indices: mid cap, consisting of 100 stocks between E300m and E3bn market cap; small cap, with 90 stocks under E300m; the mid and small index will combine both of these.
In addition, a new index for ‘high-performance’ technology stocks, the ITAC20, will replace the existing ITAC 50, and a broad index of 400-500 stocks is to be created.
The Nouveau Marche, Second Marche and Midcac indices will be phased out, says Euronext.
This is all part of the ‘Eurolist by Euronext’ single list, which will replace the above three. Companies on the regulated market will be isted alphabetically and identified by their market cap. Small caps will be capitalised under E150m, mid caps (E150m to E1bn), and large caps over E1bn.
Alternext, described as a “new structured and organised market, yet unregulated” will also be set up next year. “Alternext will be a first step towards Euronext, offering companies raising capital in the Euro-zone simplified market access in exchange for commitments on financial transparency and investor protection,” says Euronext.
A special status to highlight the expertise of brokers active in the area called ‘small and mid cap expert’ is to be created. This is for intermediaries with a team dedicated to following and marketing and sales of listed small and mid-caps. In France, these experts will have to track 60 mid cap stocks including 20 under E150m.