After a 2023 with 33 new listings, 2024 has opened in a climate of caution but it showed an acceleration in the second and early third quarters. In fact, as of July 31, there were 12 quotes on the EGM segmentsubstantially in line with the data for the first seven months of 2023when the new listings there were 13. This is what BDO Italia found, which published the data relating to its most recent study on IPOs in the segment Euronext Growth Milan (EGM) of Borsa Italiana that occurred in the first seven months of 2024.
The determining factors
The following have influenced this process: effects of macroeconomic factors: inflationalthough it has moderated since its peaks in 2022 and 2023, has continued to exert significant pressure and the European Central Bank has kept interest rates high as part of its strategy to curb price increases, resulting in increase in financing costs for businesses, causing repercussions on their investment capabilities and overall valuation.
The EGM Price List
As of July 31, 2024, therefore, the EGM price list stands at a quota 210 companies with a total capitalization equal to 8.6 billion of euros, up compared to 31 December 2023 (8.1 billion euros).
The capital raised from new freshmen reached its IPO 140.7 million euroscompared to 195.1 million euros in the previous period. These numbers confirm that the market is alive and the desire to reach listing is strong on the part of companies, but is often held back by a lack of liquidity.
There average collection of companies stands at approximately 11.7 million of euros, up 87.9% compared to the figure recorded at 31 December 2023 (6.2 million euros). The average capitalizationwhich reaches 41 million of euros, up 2.7% compared to the figure recorded at 31 December 2023 (39.9 million euros) due to two more important operations such as ICOP and Next GeoSolutions Europe. These performances reflect a good propensity on the part of the market to invest in SMEs, which are increasingly of greater interest to both Italian and foreign investors.
The most active sectors
The “Industrials” sector represents 37% of the total market capitalization, followed by the “Technology” sector which reaches 17% of the total. The distribution between sectors in the EGM list is even more heterogeneous than in the past, confirming the segment as a valid tool for the development of companies operating in all production sectors. Looking instead at the division of the number of new listings on the EGM, the sector with the highest number of IPOs is the “Industrials” with 5 new listings (62.5% of the total), which is also the sector with the highest capitalization (76.5% of the total capitalization of new listings), followed by the “Consumer goods” sector which as of July 31, 2024 is equal to 10.9% of the capitalization from new IPOs that occurred in the first seven months of 2024.
