Deutsche Börse: New SME segment to improve access to investors and growth capital to be launched in March

FRANKFURT, 30-Jan-2017 — /EuropaWire/ — Deutsche Börse published further details today on its new segment for small and medium-sized enterprises (SMEs) to be launched in March, replacing the Entry Standard in the exchange-regulated market. Accordingly, Edison Investment Research and Morningstar will be creating the research reports mandatory for all equity issuers. The reports are intended to improve companies’ transparency and visibility among investors and, additionally, facilitate issuer comparability.

Edison Investment Research will create a qualitative research report for each enterprise in the new SME segment. The report will contain an assessment of the enterprise’s business model based on a personal meeting, an analysis of the company’s data as well as that of the competitive and market environment. The initial research report will be eight to ten pages long. An update of around four pages will be published twice a year.

Morningstar’s quantitative research report is based on the work of 120 qualitative working Morningstar analysts. By means of a mathematical method, the work of the analysts is transferred to the smaller and medium-sized enterprises of the new segment. This is based on the balance sheets and cash flow statements of the issuers. The company’s evaluation is based on twelve key indicators and updated daily.

The two research approaches are independent, and the reports will not contain any investment recommendations. All reports will be available at Issuers will have the option of ordering additional research reports.

Deutsche Börse’s new SME segment intends to improve this sector’s access to investors and growth capital. The target group are companies with tried and tested business models that have already been successful with investors. One of the admission requirements is the collaboration with a Deutsche Börse capital market partner, who will examine the company’s suitability for the segment and also will monitor the issuer after their IPO.

Deutsche Börse’s aim is to establish a functioning ecosystem for growth in Germany and Europe that supports companies through all growth stages all the way up to listing, therefore generating more IPOs.

About Morningstar
Morningstar is a leading provider of financial services in North America, Europe, Australia and Asia with operations in 27 countries. The company has an extensive range of products and services for retail investors, financial advisors and institutional investors. Morningstar provides data on nearly 540,000 investment products, including stocks and mutual funds, along with real-time market data from around the world on approximately 18.5 million equities, indices, futures, options, commodities and precious metals, in addition to foreign exchange and bond markets. Morningstar offers advisory services through registered advisors, and has around US$ 200 billion in assets under advisement and management as of 30 September 2016.

About Edison
Edison is an investment research and advisory company with offices in North America, Europe, the Middle East and Asia Pacific. Edison distinguishes itself through its equity research platform and deep multi-sector expertise. Its publications aimed at all market participants attract a wide international readership. The company leverages its knowledge of multiple sectors to provide nuanced services.

SOURCE: Deutsche Börse Group


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