AIM Italia - Ernesto Mocci - Methorios Capital

AIM Italia‣ The acquisition of Borsa Italiana by the London Stock exchange in 2007 for € 1.5 bln, laid the foundation for theimplementation in Italy of the AIM Market structure, an exchange regulated market that achieved significant success inthe UK since its launch in 1995.‣ The AIM Italia launch was completed on December 01, 2008 and saw its first listings in May 2009 (Neurosoft and IKF).As at the close of 2010 AIM Italia had 11 companies listed on the market (1 currently suspended from trading pendingapproval for readmission by Borsa Italiana) and an overall market cap of € 359.8 mln at year end 2010 (excluding thesuspended House Building). When comparing to AIM UK, launched on 19/06/1995 the market had 252 companieslisted at the close of 1996 and an overall market capitalisation of £ 5.3 bln (average market cap per listing £ 21 mln).Much of the success of AIM UK has derived from the already present investor base in London. Italy unlike the UKdoes not have a significant institutional investment base for small companies. In addition the current size of the marketin terms of listed companies has not reached a critical mass that is essential to drive liquidity.‣ Another consideration is the cultural differences between the UK and Italy in terms of company structures and capitalmarkets. The majority of SME companies in Italy are family businesses that have been passed down generations. Theidea of diluting control to outside investors/non family shareholders is a concept that will take some time for thetraditional Italian SME market to warm to. Outside investors will on the other hand be reluctant to invest in the listedcompanies until they are certain that management adheres to the considerations of outside shareholders.‣ The requirements for a company wanting to list on the market are: the provision of the last three financials of thecompany, of which 2 are audited according to International Accounting Standards (IAS), and an admission document forlisting. For the process the company must also appoint a Nominated Adviser (Nomad) and a Specialist to ensure that thecompany adheres to the MTF rules and there is liquidity for investors. The listing process normally takes around 6months to complete.15