BRUSSELS, 26-3-2015 — /EuropaWire/ — Following the release of the European Commission’s Green Paper on the Capital Markets Union, Philippe de Backer MEP and Chairman of the European IPO Task Force today announces the publication of the EU IPO Report: Rebuilding IPOs in Europe; Creating jobs and growth in European capital markets.
The Task Force brings together experts from across the EU with direct knowledge and experience of Initial Public Offerings (IPOs) who together agreed on key recommendations on how to improve this key component of Europe’s capital markets.
Philippe de Backer MEP, Chairman of the Task Force said: “The European IPO markets need to work better for the real economy. Although Europe continues to build and grow businesses with the potential to be world class the failure of the IPO market to facilitate their access to capital hampers their growth and ultimately their potential to create jobs. In order to deliver a Capital Markets Union in Europe that can provide more diverse funding sources for companies and cut the cost of raising capital, notably for smaller companies, we need policymakers, regulators, and industry to work together to deliver reforms to regulation, to the tax regime, and to market practices that will make IPO funding through the public markets accessible to all European companies”.
The IPO Task Force specifically identified 5 key areas for reform:
– Create a more balanced and flexible regulatory environment for small and mid-cap quoted companies, also known as “Emerging Growth Companies”;
– Ease constraints that restrict investors’ access to IPO markets and to invest in venture capital / private equity;
– Improve the market ecosystem to better serve companies at different stage of growth and different types of investors;
– Create an equity culture in Europe, including education and non-legislative initiatives;
– Improve tax incentives for investment into IPOs and in equity more generally. Download the www.fese.eu
Notes for Editors
The IPO Task Force was established in summer 2014 by three EU-level associations: EuropeanIssuers; the European Private Equity and Venture Capital Association and Federation of European Securities Exchanges
The Task Force is comprised of 18 members, drawn from all sectors of the market, and included representatives of stock exchanges, listed companies, investors and private equity and venture capital.
It is chaired by Philippe de Backer MEP – a prominent ALDE member of the European Parliament with expertise in financial market issues.
The European IPO market is facing a long term decline; both the number of IPOs and the amount of capital raised has fallen in the last ten years to approximately half that of the 1990s. EU households and insurers decreased their equity holdings by around 30% since 2000.
EuropeanIssuers is a pan-European organisation representing the interests of publicly quoted companies across Europe. As at 31 December 2014, there were 13 225 such companies on both the main regulated markets and the alternative exchange-regulated markets. Our members include both national associations and companies from all sectors, covering markets worth € 7.2 billion market capitalisation with approximately 8000 companies.
We aim to ensure that EU policy creates an environment in which companies can raise capital through the public markets and can deliver growth over the longer-term. We seek capital markets that serve the interests of their end users, including issuers.
For more information, please visit www.europeanissuers.eu
The EVCA is the voice of European private equity. Our membership covers the full range of private equity activity, from early-stage venture capital to the largest private equity firms, and funds investing in infrastructure. We also represent institutional investors such as pension funds and insurance companies, who are a key source of long-term financing in Europe and invest in private equity, venture capital and infrastructure funds.
For more information visit our website: www.evca.eu
The Federation of European Securities Exchanges (FESE) represents 37 exchanges in equities, bonds, derivatives and commodities through 19 full members from 30 countries, as well as 1 Affiliate Member and 1 Observer Member. FESE represents public Regulated Markets. Regulated Markets provide both institutional and retail investors with transparent and neutral price-formation. Securities admitted to trading on our markets have to comply with stringent initial and ongoing disclosure requirements and accounting and auditing standards imposed by EU laws.
At the end of 2014, FESE members had up to 9,027 companies listed on their markets, of which 7% are foreign companies contributing towards European integration and providing broad and liquid access to Europe’s capital markets. Many of our members also organise specialised markets that allow small and medium sized companies across Europe to access the capital markets; 1,442 companies were listed in these specialised markets/segments in equity, increasing choice for investors and issuers.
For more information, please visit www.fese.eu