Listing in the direct market plus segment of the Vienna Stock Exchange
Accredited Direct Funding Partner
Since January 2019, SMEs and later-stage start-ups have been granted easier access to the Vienna Stock Exchange. But what are the advantages, the requirements, the consequences, and the advice on the way to the listing? As an accredited direct funding partner, Konsultori is pleased to support you in this process.
The new direct market plus segment for SMEs and start-ups
If you are a stock corporation with a low double-digit number of shareholders or a start-up in its growth phase (after a well-managed first expansion phase) looking for more publicity and needing access to further investor groups, things got easier since January 2019. The Vienna Stock Exchange joins international markets such as NASDAQ in the USA, AIM in London, Euronext in Brussels, and Nasdaq Nordic in Stockholm. Technology-driven, smaller companies are venturing a listing on the stock exchange there.
The new segment “direct market plus” as a segment of the stock market of the Vienna Stock Exchange has become possible due to the amendment of the Austrian Stock Corporation Act. The advantage for entrepreneurs is the easier and lower-cost access to the Vienna Stock Exchange (EUR 5,000 for listing, EUR 1,000 annual fee).
The new segment enables SMEs and fast-growing start-ups or start-ups in a later stage to enter the capital market. At the same time, this first listing offers a good spring-board for more capital and growth to other segments.
At the start of the “direct market plus” segment in January 2019, eight companies were on board, four of them were new to the Vienna Stock Exchange: startup300 AG, EYEMAXX Real Estate AG, VST Building Technologies AG, and Wolftank-Adisa Holding AG. You can see the performance of the direct market plus listing here.
Background information on the listing on the direct market plus
Why is access to the “direct market plus” more convenient?
Compared to the EU regulated market, the access requirements and follow-up obligations for listed companies are lower, as are the costs of listing. Here is the comparison:
- The minimum duration of company existence: 1 year on the direct market plus, no regulation on the direct market segment.
- Annual financial statements, semi-annual report, company calendar: only required for direct market plus, not for the direct market.
- Obligation to comply with ad-hoc publicity, maintenance of insider lists and managers’ transactions according to MAR (Market Abuse Regulation)
- Access with or without brochure
- No minimum size
- No minimum market capitalization
- No minimum placement volume
What are the advantages of “direct market plus” for SMEs and start-ups?
- Shares become easily tradable.
- Your investors receive a gradual exit opportunity.
- There is the possibility of gaining access to new investors.
- The company valuation is transparent and enables existing shareholders to do a valuation.
- Enables the first step for a later capital raise.
- The company gains increased visibility in public (with customers and suppliers).
What are the admission requirements?
The company has a minimum holding period of 1 year (direct market plus).
The company form is a stock corporation with a minimum number of shareholders in the low double-digit range.
An information memorandum provides the necessary transparency for a listing
Proof of a the establishment of a compliance process
Which support do SMEs and start-ups receive before listing on the Vienna Stock Exchange?
The Vienna Stock Exchange ensures that also companies in the ecosystem receive excellent support. That is why the direct network of the Vienna Stock Exchange has been established. It comprises investment banks, capital market coaches, and direct funding partners.
Accredited Direct Funding Partner of the Vienna Stock Exchange
Konsultori has been an accredited direct funding partner of the Vienna Stock Exchange since June 2019. It supports SMEs and start-ups in the growth phase when going through financing rounds before listing on the stock exchange; as well as on the way to the stock exchange financing round. We bring companies and investors together and support them in their preparation.
What does that mean for example?
- Support during the planning and realization of preparatory measures, e.g. business model adjustment, financial processes, compliance processes, restructuring from PLC to stock corporation, strategic adaptations, etc.
- Project management function
- Support in the choice of lawyer, investment bank, etc.
- Conditions of the direct market plus and consequences of a listing
- Preparation of the Information Memorandum
- Business valuation
- Advice during preliminary discussions with the stock exchange
- Carrying out pre-market financing rounds
Since 2001 M&A projects in CEE in the corporate sector and since 2011 attracting investors for start-ups.
Advice on winning investors for an industry platform, as well as in the areas of AgTech, AI, MedTech, AdTech. See the Case Study. Since 2016 workshops on investor readiness at the Vienna Business Agency, as well as online coachings on the key2investors platform.