BME faces the second half of the year in an environment "very positive" for the market with the most IPOs

May 26. () –

The commercial director and development of the equity market at Spanish Stock Exchanges and Markets (BME), Francisco Formariz, has indicated that the stock market manager faces the second half of the year in a “very positive” environment for the market after stock market debuts such as Puig and many others that could materialize in the remainder of 2024.

In an interview with Europa Press on the occasion of the beginning this coming Tuesday of the 20th edition of the Medcap forum, an event that will bring together hundreds of medium and small-sized listed companies with institutional investors, the executive of the stock manager explained that this positive market environment It is explained by both the prices and the returns offered, as well as the low volatility.

After two years of drought in terms of IPOs, Formariz has highlighted the relevance of Puig’s debut at the beginning of the month with a valuation close to 14,000 million euros, since it has been “the largest IPO in Europe” in so far this year.

In addition, he stressed that they know that there are several companies that “are analyzing the process and working with their advisors, both investment banks and legal advisors, to consider going to market.”

However, the manager, who has been in his current position since 2016, has stated that they have not been idly in the last two years due to the lack of stock market debuts: “We were providing service on the side of capital increases of the companies that were listed, that is, we continue to be a source of financing for companies.

Along these lines, he recognizes that new incorporations are taking center stage in the market and considers that investors “are already needing this type of new companies, so we are very happy to be able to take on this process in the coming months.”

With the focus on the IPOs of small and medium-sized companies, Formariz has explained that so far this year the debuts of companies in the real estate sector in the form of SOCIMIs have stood out, although he has pointed out that there are companies that are analyzing the exits and are of large sizes (they can reach valuations of 5,000 million) and sectors such as food, distribution and tourism.

Formariz has not ventured to say whether last year’s ten debuts will be surpassed in the BME Growth (the stock market segment for SMEs), but he is confident of achieving a “good year” in that regard.

Regarding the wave of takeover bids that are going through the market, with BBVA’s takeover of Banco Sabadell being the one that attracts all the attention, Formariz has highlighted that “precisely these operations are possible thanks to the fact that they are listed on the market, that is, that the “The Stock Exchange offers an objective valuation of these companies and facilitates corporate merger operations.”

“The stock market environment also has these takeover bid operations as part of the natural growth process,” he pointed out, and then stressed that the important thing is that they effectively serve to translate into larger, more relevant companies and that entrepreneurs have most attractive and liquid companies in the market.

On the other hand, regarding the low trading volumes of the Stock Exchange, which stood at 27,439 million euros in April, 25% less than last year, Formariz has replied that they are “temporary” and reflect the context in which that have to compete with other platforms and markets.

HIGHER HIRING IN MAY

Despite this, he has optimistically noted that May “is being better”, with average daily contracting volumes of 1.6 billion: “We believe that May is going to be a turning point,” he stressed in this regard.

“I hope that we can continue to be a competitive market for all companies, and I believe that in terms of technology and costs we are,” he argued along those lines.

MAINTAINING THE “LIQUIDITY WELL” IN SPAIN

Asked if they are concerned about Ferrovial’s recent debut on the Nasdaq in the United States and if other Spanish listed companies could follow the example of the construction company, the BME executive alludes that “the important thing is to maintain the well of liquidity here”, since The Spanish market concentrates more than 90% of Ferrovial’s trading volume compared to New York and Amsterdam.

Furthermore, he stated that Ferrovial’s movement has always been “much more natural” than it may seem now.