in 2023, IPOs in Milan will grow again

Euronext Growth Milan records 33 IPOs in 2023. The total collection, including greenshoe where exercised, is equal to 205.2 million of Euro. Furthermore, 2023 saw the business combination between Sicily by Car and the SPAC Industrial Stars of Italy 4, an operation worth a total of 100 million euros of which 61 million euros in capital increase. Net of Sicily by Car, the identikit of the company listed in 2023 presents the following average data in IPO: capitalization equal to 31.2 million of Euro, average collection of 6.2 million euros (94% in capital increase), free float equal to 23.8%. This is the picture drawn by the IR Top Consulting EGM Observatory.

The 2023 IPO balance sheet on EGM

According to the EGM Observatory, the market dedicated to SMEs continued to grow in 2023 marking 33 new IPOs and closing the year with a positive balance of +13 companies which brings the total number of listed at 203 (+7% compared to 190 at 31 December 2022). A figure that confirms the trend that has always characterized EGM since its birth in 2009 and which is in clear contrast with the main list: Euronext Milan closes 2023 with 225 companies listed companies, in line with 31 December 2022 (224 listed companies) after 9 delistings, 5 IPOs and 5 translistings from EGM.

The size of the list dedicated to SMEs is consolidated, recording an overall turnover in 2022 of 9.3 billion euros (up 47% compared to 6.4 billion euros in 2021) and an overall number of employees equal to 31.1 thousand (+18% compared to 26.3 thousand in 2021), representing a strong driving force for employment and economic growth and for this reason it will be fundamental that the Milleproroghe Decree renews the IPO Bonus which has favored the development of the market”.

The Euronext Growth Milan market as of 31 December 2023

As of December 31, 2023, the market EGM has 203 companies quoted for one total capitalization of 8.2 billion of Euro. Euronext Growth Milan confirms itself as the main capital raising channel for the growth of SMEs: from 2009 to today it has welcomed 304 companies (including passages on EXM-STAR, takeover bids, delistings and mergers) and the raised in IPO was equal to 5.9 billion of Euro.

The market recorded a notable development since 2017thanks to the combined effect of Individual Savings Plans (PIR) and del tax credit on IPO costs (CDI): +164% in terms of listed companies compared to 31 December 2016, +181% in terms of capitalization compared to 31 December 2016. EGM has evolved by increasing the sectoral and territorial heterogeneity of SMEs. In terms of listed companies: the most represented sectors are Industry and Technology (20%), Services (15%) and Finance (11%); the most represented regions are Lombardy (42%), Lazio (11%), Emilia-Romagna (9%) and Veneto (8%).

EGM has contributed to the growth of the regulated market with 28 companies that have perfected translisting on EXM/STAR. The overall capitalization at translisting was equal to 7.3 billion euros, for an average of 261 million euros: as of 31 December 2023, the 25 companies listed on the main market capitalized a total of 14.9 billion euros, recording an average performance from translisting equal to +113%. EGM has also recorded, since 2009, 29 Public Takeover Offers (OPA), 39 delistings and 5 mergers.

The IPO Bonus

Since its introduction in 2018, the IPO bonus has been renewed from year to year, almost always with the same conditions (the budget law for 2022 had lowered the ceiling to 200 thousand euros, then raised it again to 500 thousand euros last year). The tax credit supports SMEs that decide to go public on a regulated market or in multilateral trading facilities of a Member State of the European Union or of the European Economic Area. Businesses can apply for a tax credit equal to 50% of the consultancy costs incurred, up to a maximum of 500,000 euros.

From its introduction in 2018 to today, the IPO Bonus has represented the form of incentive in favor of the company most suited to the stock market model for its characteristics of immediate understanding and ease of implementation: according to the EGM PMI Observatory, the measure provided a significant boost for the prices on the Euronext Growth Milan market which has seen over 160 IPOs, mostly from SMEs. The tax incentive on listing costs in the five-year period of application 2018-2022 favored over 120 IPOs with an overall use of the measure by SMEs of around 50 million euros. In particular, in 2022 there were 25 IPOs with a total tax credit of 9.4 million euros.