Scale, the new stock exchange segment for small and medium-sized enterprises
Scale primarily addresses the significantly increased investment needs of small and medium-sized enterprises. SMEs are currently facing major challenges such as Industry 4.0 or digitalization. With Scale, we provide these companies with better access to growth capital while increasing their visibility to international investors. To do this, we have a whole range of new services in this segment, including research reports for each issuer, which are commissioned by us as the exchange. We bring the companies together with experienced Capital Market Partners, who continue to support them closely after the IPO. And in the medium term, we are also thinking about a selection index, which has the potential to bring in further attention and thus additional capital. We are satisfied with the start. In the very first month, we had our first IPO with IBU-tec advanced materials AG, and we launched the Scale All Share Index, which tracks all stocks in the segment.
The companies should be established in their markets and also already have experience with investors. They must have a market capitalization of at least 30 million euros and meet certain key figures, e.g. in terms of sales, equity, net income or number of employees. The Capital Markets Partner also has a duty to review issuers on the basis of financial and legal due diligence and confirm that they are suitable for Scale.
Scale is an entry-level segment, but at the same time challenges companies to maintain a high presence on the capital market even after going public. For example, an annual analyst conference is mandatory, and issuers are also obliged to conduct ongoing research. For us as a stock exchange, it is a very central task to provide the economy with sufficient equity capital. In this way, we are contributing to the development of Germany as a business location. So far, we have received a lot of positive feedback on Scale, on the one hand from the market, but also from the federal government. We believe Scale has the potential to increase the number of IPOs in the long term.
About Eric Leupold
Eric Leupold joined Deutsche Börse Group in August 2009. From January 2014 to March 2016, he headed the Issuer & Primary Market Relations Section. Since May 2016, he has headed the “Pre-IPO & Capital Markets” department as Head of Department. Previously, he worked in Group Compliance at Deutsche Börse AG, where his responsibilities included insider trading prevention and compliance training.