Over the summer, the Swiss stock exchange released important news, which may also interest Swiss family offices and family businesses. The Swiss stock exchange, SIX, has launched a new segment that could make going public more attractive to SMEs. The question also arises as to what this means for family businesses. On the one hand, the new segment could be an incentive for family businesses or parts of them to go public. On the other hand, it may create further investment opportunities for family businesses and family offices.
Let’s take a closer look
Early in July 2021, the Swiss stock exchange SIX announced that – subject to regulatory approval – it will launch a new equity segment called Sparks, which is dedicated to small and medium-sized enterprises. The new segment aims to attract companies with a lower market capitalisation to the stock exchange, meaning that on the day of the listing, they must have a market capitalisation of less than CHF 500-million. Further, fewer requirements for free float, equity and financial track records are intended to lower the entry thresholds for a stock exchange listing. Contrary to the main market a minimum trading activity will not be ensured by a percentage free-float (20% with a capitalisation of at least CHF 25-million), but by a shareholder base of more than 50 investors.