AIM Italia - Ernesto Mocci - Methorios Capital

European MTF markets‣ From analysing this information it is possible to see that there are various differences in the style of MTF/non regulated markets inEurope. This reflects the diverse make ups of the various financial industries. Luxembourg with its beneficial taxation system iscomprised of a greater proportion of markets abroad (97% for Euro MTF as at December 28, 2010).‣ In the UK, the implementation of the Small to Mid cap market, AIM UK, has been a great success. The market has benefitedimmensely from the branding of the London Stock Exchange and the domestic presence of an abundance of institutionalinvestors present in the London’s central business district. The market is comprised of significantly domestic issued companies thatits institutional investment base appears to be comfortably investing in. However a growing amount of the new listings on thismarket are coming from Chinese and Australian resource companies as well as US companies that have not been able to listdomestically and have therefore listed on the more flexible AIM UK market. However investors are becoming more hesitant toinvest in foreign companies there is greater difficultly in accessing market information for fundamentals analysis.‣ The Italian market and business culture is unique to those of its European neighbours. The level of institutional investment at asmall cap level is low, instead the greater portion of capital raising is carried out by private investors/private equity. Therefore thepresence of a public market such as AIM Italia for SME’s does not immediately fit the natural model in the Italian market and willtherefore take time for institutions and private investor to warm to the concept. Foreign investors are hesitant to enter into theItalian small cap space as there is a significant amount of ground work to be performed in order to get an understanding of anItalian company’s shareholder model and the relationships it has with other firms and political entities.‣ The table shown below summarises various statistics reported by MTF/exchange regulated markets in Europe with respect tomarket listings, capitalisations, and turnover.Exchange regulated market/MTFNew Listings Average Market Cap (€ Trading turnover2010 mln as at 30/12/2010) 2010 (€ mln)Euronext Alternext* 34 31.6 1,013.0Euronext Marche Libre* 20 21.4 97.0Euro MTF (Luxembourg)** 51 125.0 22.0AIM UK* (EUR/GBP=1.1608 Dec 30 2010) 88 81.4 1,376.4AIM Italia 6 36.0 52.0MAC 2 33.1 2.5MAB 10 25.1 8.4* 2010 as at November 30** 2010 as at December 2831