Main stock exchanges
The main stock exchange in the Netherlands is Euronext Amsterdam. The stock market indices used at Euronext are the Amsterdam Exchange Index (AEX), the Amsterdam Midcap Index (AMX) and the Amsterdam Small Cap Index (AScX). A stock market index indicates the average price of listed companies included in the index.
Conditions for an IPO (Initial Public Offering)
Going public with your company for the first time is called an IPO: Initial Public Offering. Businesses listed on the stock market have to meet several criteria:
- The business has to be older than 5 years.
- The business must have at least € 5,000,000 in equity.
- The shares to be issued must have a value greater than €5,000,000.
- The business must have turned a profit in at least 3 of the past 5 years.
Costs of an IPO
Apart from these conditions, you should be well informed about the costs of an IPO. For listing and trading the securities, Euronext will charge the company for various costs. For example:
- admission fees
- annual listing fees
- admission fees for a follow-up issue of shares and depositary receipts
There are also brokerage fees, commission agent fees, additional accountant fees and more.
The SME exchange
The regular stock market is out of reach for most entrepreneurs. Smaller businesses can also be listed on the NPEX, a special stock exchange for SMEs. You must meet several conditions for an IPO on the NPEX:
- The business has been in existence for at least 3 years.
- The business must have made a profit for at least 1 year.
- You want to finance a minimum of €500,000.
- You must publish your company's performance, such as fiancial statements and half-yearly figures.
New stock market trends: SPAC and DPO
SPAC is short for Special Purpose Acquisition Company. SPACs are businesses that use their listing to raise capital for an acquisition or merger. At the time of the IPO, investors do not yet know which company they will ultimately invest in. SPACs have no existing business activities on the day of their IPO.
In a Direct Public Offering (DPO), companies can sell their shares directly to the public. An IPO almost always involves an intermediary, such as an investment bank. Its role then includes helping decide how many shares and at what price they will be issued on the stock exchange. With a DPO, there is no need to involve an investment bank. This saves a lot of time and costs. However, special brokers often help with a DPO to carry out the process successfully.
Help with financing
Enlisting help will increase your odds of obtaining finance. With the right adviser and good financial substantiation, you will get your finance application approved in no time. These advisers will help you get started.