The Advisor
The choice of the team of advisors, which will follow the company being listed and, in particular, the identification of the Nomad (Nominated Adviser) represent a fundamental passage for the success of the admission to the market operation. It is advisable that the choice is accurate and well weighted since the company and the advisors will work together in the preparation stage to the listing and throughout the period of permanence of the company on AIM Italia – Alternative Capital Market.
What is a Nomad?
A Nomad is a central figure for AIM Italia – Alternative Capital Market. The Nomads must be admitted by Borsa Italiana and are entered in an appropriate register. A Nomad can be a business bank, an intermediary or a company mainly operating in the corporate finance sector. It must evaluate the eligibility of the company to the admission to the market, supporting it in maintaining an adequate profile of informative transparency vis-à-vis investors, and stimulate the attention by the company to comply with the rules deriving from being listed on AIM Italia – Alternative Capital Market, maximizing the benefits thereof.
How to become a Nomad
For becoming a Nomad it is first of all necessary to meet the admission criteria defined by Borsa Italiana, i.e. one must:
- be a capital company known to the market and with adequate professionalism, which has a board of directors, a board of auditors and the financial statements must be submitted to the judgement of an auditing firm;
- have exercised mainly corporate finance activity for an adequate period of time;
- have performed an adequate number of material transactions such as, for example, transactions providing for the preparation of a prospectus or equivalent (IPO or OPA);
- have key executives in possession of adequate professionalism, evidenced by a number of material transactions and an adequate technical competence in corporate finance and market practices.
The duties of a Nomad
The main duties of a Nomad, so as provided by AIM Italia rules, are the following:
- to make the due diligence described in the Rules of AIM Italia – Alternative Capital Market for the purpose of evaluating whether a company is eligible for admission to the market;
- to handle the listing process, coordinating the team of advisors, defining the time schedule and guiding the company in the preparation of the admission document;
- to provide advice to the company, once it is listed, about the fulfillments provides by the Rules of issuers. A Nomad assists the company listed on AIM Italia - Alternative Capital Market throughout the period of permanence on the market.
Who are the broker and the specialist?
The company that lists on AIM Italia – Alternative Capital Market must choose a broker, or an intermediary, which participates in the markets of Borsa Italiana with the duty of placing the securities of the company on the market, after defining with the company the type of target investors, the most adequate price and the investor relations strategy to be adopted.
After being admitted, the company must provide itself with a specialist, who shall have the duty to support the liquidity of the security. A specialist does not always coincide with the broker, which placed the securities during the admission phase, whilst the figure of the broker and that of the Nomad may coincide, where the Nomad is an authorized intermediary.
Which are the other advisors?
The team of advisors, which will join the Nomad during the listing process, in order to ensure that all the activities are perfectly coordinated and planned for maintaining the envisaged time schedule for the listing, is represented by several persons depending on the company’s needs and the complexity of the transaction: the law firm, the auditing firm, the finance advisor, the communication company and the advisor in investor relations.
The advice of the Equity Market Partners is a valid support for directing you in the choice of the experts, which will accompany you on the Stock Exchange.