Dispelling Myths

Is an IPO suitable for large companies only?

Borsa Italiana operates several stock markets. The Euronext Milan market is dedicated to medium and large companies, ranging from market niche leaders to true global players. The Euronext Growth Milan market has no size limit. Small size is not an obstacle when the companies show success stories, solid and sustainable projects, a reliable business strategy and a strong management team.

Do you lose control over your company after an IPO?

The minimum free float required is 25% for the Euronext Milan market and 10% for Euronext Growth Milan. A free float percentage of less than 50% ensures full control to pre-listing shareholders.

Is it true that markets have a short-term vision and do not reward long-term projects?

Market investors carefully analyse their investments and choose to share a growth path with the companies they have invested in. To ensure investors’ interest in the long term, listed companies must regularly disclose results and information on business affairs, providing details of both positive and more challenging events.

Is an IPO a complex process with risk of losing focus on the business?

The IPO process certainly breaks the ordinary business routine and you need to prepare yourself properly. To support the process adequately, without losing focus on the business, it is important to have a solid, cohesive and autonomous internal team, who can profitably carry on the day-to-day business while setting up a team of experienced advisers who support the company in the IPO process.

Is an IPO a very expensive process?

The costs incurred in an IPO process often involve expenditures that are necessary to improve the company’s ability to compete and meet growth challenges.