MILAN, Nov 25 (Reuters) – The buyout of Atlantia (ATL.MI) will reduce one other 19 billion euros ($19.5 billion) from the worth of the Milan bourse and convey to 12 the variety of corporations to depart the inventory trade this yr, fuelling fears about its standing.
Legislators and regulators wish to reverse the development and reinforce the function of the 200-year-old Borsa Italiana on the coronary heart of Italian enterprise.
Barbara Lunghi, head of fairness listings Italy at market proprietor Euronext, argues the scrutiny of being a listed enterprise and having exterior buyers pushes companies to innovate and develop.
“It offers corporations that further gear that helps to drive development,” Lunghi stated.
However the issue has deep roots, with lots of Italy’s family-run companies unwilling to relinquish management by itemizing their companies except they want money for M&A or different growth methods.
Market watchdog Consob authorised measures this yr to simplify procedures for the approval of IPO prospectuses, together with permitting them to be submitted in English.
Additionally aiming to speed up change, Italy this yr began to review the best way to overhaul its itemizing, voting and different guidelines to deal with the problems holding again the nation’s capital markets – although this course of was frozen by a change in authorities after a right-wing coalition gained elections on the finish of September.
MILAN EXODUS
To this point this yr 11 corporations have deserted Euronext Milan, together with the Agnelli household’s holding firm Exor (EXOR.AS), which moved to the Amsterdam bourse in keeping with the place it’s legally registered.
Street and airport operator Atlantia is leaving after a buyout by the Benetton household and Blackstone handed the 90% help threshold on Thursday.
Journey caterer Autogrill (AGL.MI) is predicted to be delisted after a merger with Switzerland’s Dufry, and the destiny of shoemaker Tod’s (TOD.MI) stays unsure after the failure of a buyout supply by its fundamental shareholder.
CNH Industrial (CNHI.MI), whose shares are listed each in Milan and New York, can be evaluating the opportunity of placing an finish to its twin itemizing and specializing in the NYSE.
Taking listed corporations personal is a broader development shared by many European inventory exchanges, as low costs and availability of low cost cash made it handy.
FEW NEWCOMERS
On the plus aspect, 4 corporations joined the primary Euronext Milan market this yr, together with truckmaker Iveco (IVG.MI), which was the results of a spin off. Two different corporations upgraded from the smaller Euronext Progress Milan.
The scenario is more healthy for Euronext Progress Milan itself, a market devoted to small and medium-sized enterprises with minimal entry necessities. In 2022 it counted 18 new listings, however the total market cap may be very low.
A dearth of Italian IPOs is a perennial difficulty.
Over the previous 20 years, the primary market has misplaced 268 listed corporations and gained solely 185, in accordance with Intermonte analysis revealed in March. In distinction, the much less regulated SME market has attracted 263 listed corporations and seen 68 delistings.
CULTURAL ISSUE
The truth that there are comparatively few listed corporations has its roots within the nation’s historical past, stated Andrea Beltratti, professor of Political Economic system at Milan’s Bocconi College.
Beltratti stated Italy lacks an extended custom of fairness finance and its economic system has been comparatively weak for the final 20 years.
The heavy presence of banks and different monetary intermediaries in Italy has supplanted the function of the markets, so corporations usually most popular to ask them for funding.
“The advantages of being listed are the benefit of gathering capital and reputational (place), however there are additionally prices, related to regulation, the necessity for transparency, and the numerous interactions with buyers”, Beltratti stated.
“I do not assume these are points that may be solved in months and even years as a result of it’s a cultural difficulty,” Beltratti added.
($1 = 0.9755 euros)
Reporting by Elisa Anzolin; Graphic by Danilo Masoni; Modifying by Keith Weir and David Holmes
Our Requirements: The Thomson Reuters Belief Ideas.
