On April 12th, 2005, the Irish Stock Exchange (ISE) launched its new market, the Irish Enterprise Exchange (IEX), which is designed to meet the needs of small to mid-sized companies.
The IEX started off with the eight firms which were formerly listed on the Exploration Securities Market (ESM) and the Developing Companies Market (DCM), and in May, Lapp Plats, the nickel and platinum exploration company, became the first company to list on the exchange. This was followed last month by the listing of Fitzwilliam Capital plc, the online and direct seller of subscription-based mobile phone contracts in Germany.
The ISE hopes that the IEX will become the market of choice for small to mid-sized Irish companies, and will attract such companies that are considering a public floatation.
Deirdre Somers, director of listings with the ISE, is optimistic that there will be further new entrants before the end of the year.
She says, ‘The new market will allow companies to enjoy all the benefits of a home market quotation, while at the same time creating a streamlined admission process for those companies who might choose a dual quotation on IEX and AIM’.
The IEX follows a similar format to the London Stock Exchange’s Alternative Investments Market (AIM), which has been very successful to date, with around 1,300 companies listed and a combined market capitalisation of over €11 billion.
Somers sees the IEX as being complementary to AIM, rather than competing with it, and says that by using the IEX Designated Markets Route, a company currently admitted to AIM may be able to avail of a simplified admission process to IEX and thereby have a dual quotation. ‘Essentially then, Irish companies will have the best of both worlds – a presence on their local and international market,’ she says.
This formula has worked in the case of Fitzwilliam Capital, which is also listed on AIM. Apart from the enhanced liquidity that a euro-denominated quote and trading facility on IEX will bring to the shares, Somers says that the fact that the IEX requirements and regulatory regime are similar to those of AIM, was also a key factor in Fitzwilliam choosing the IEX for an additional listing. |
