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  • 1/3 of all capital raised last year was raised on Euronext
  • /download/materials/aaaron_goldstein_ipo_3.ppt

    1. 1. Euronext: Gateway to the € uro-zone Holland France Portugal Belgium February 2007
    2. 2. Euronext today <ul><li>The world’s first integrated cross-border exchange </li></ul><ul><ul><li>Operating in 5 European countries and the U.S. </li></ul></ul><ul><li>Europe’s largest central orderbook exchange </li></ul><ul><li>The world’s second largest derivatives market </li></ul><ul><ul><li>Business worth €1,700 billion traded every day </li></ul></ul><ul><li>A leading supplier of exchange trading technology </li></ul><ul><ul><li>Used worldwide by most leading cash & derivatives exchanges </li></ul></ul><ul><li>A listed company - market capitalisation of € 9 billion </li></ul><ul><ul><li>Merger with NYSE expected by end Q1 2007 </li></ul></ul>Source: Euronext
    3. 3. Euronext’s competitive position in Europe MARKET CAPITALISATION European cash equity market capitalisation (year end 2006) TRADING VOLUMES (full year 2006) Source: Federation of European Securities Exchanges (FESE) <ul><li>Equal largest equity market in Europe </li></ul><ul><li>Largest trading platform in Europe </li></ul>
    4. 4. Sector comparison Euronext vs LSE <ul><li>Euronext – largest in Technology, Consumer Goods, Utilities, Industrials </li></ul><ul><li>LSE – largest in Financials, Basic Materials, Oil & Gas </li></ul>Total market cap = €3,045 billion Total market cap = €3,029 billion Source: Euronext & LSE data as at end 2006. ICB classification, domestic & primary listings, includes main market, junior market, equity investment instruments.
    5. 5. Euronext – International Listings Breakdown of listed companies 25% of Euronext’s 1,300 companies are international Selected international companies: Arcelor Mittal, Corus Group, Daiwa, Deutsche Bank, Exxon Mobil, Fiat, Hitachi, Honda, HSBC, Maroc Telecom, Mitsubishi Electric, NEC, SES Global, Sharp…... Selected domestic companies: ABN Amro, AXA, BNP Paribas, Carrefour, Danone, EDF, Fortis, France Telecom, GDF, Heineken, ING Group, L’Oréal, LVMH, Michelin, Philips, Renault, Royal Dutch Shell, Sanofi-Aventis, Société Générale, Suez, Total, Unilever…… International Companies Domestic Companies
    6. 6. Top ranked for raising fresh capital in the world <ul><li>€ 17.2 bn fresh capital raised, 78 new listings in 2005… </li></ul><ul><li>… continuing with € 21.4 bn raised, 142 new listings 2006. </li></ul><ul><li>The world’s largest IPO 2005: EDF </li></ul><ul><li>An additional mkt cap of € 201 bn since Jan 2005 </li></ul>Selected Deals Milestones: <ul><li>Key market for raising capital </li></ul><ul><li>Highly active hi-tech segment </li></ul><ul><li>More privatisations than any </li></ul><ul><li>other exchange </li></ul>Small caps Mid caps Large caps € 467m GPS navigation Tom Tom € 3.8m Biotechnology ExonHit Therapeutics € 23m Environmental measurement Environnement € 860m Satellite network Eutelsat $ 5,000m Specialty finance KKR Private Equity € 7,000m Utilities - electricity EDF (Electricité de France)
    7. 7. Unique access to European asset managers <ul><li>Geographical split of equity fund assets typifies wider European investment profile </li></ul><ul><li>Euro-zone countries dominate – 71.5% of total equity funds under management </li></ul><ul><li>Fragmented market – cross-border access is key </li></ul><ul><li>Euronext gives access to the Euro-zone…as well as UK based investors: all major London investment banks are active members </li></ul>Source: European Fund and Asset Management Association Outside € uro-zone 28.5% € uro-zone 71.5%
    8. 8. Listing requirements
    9. 9. Listing requirements – overview
    10. 10. Eurolist – the main board <ul><li>One cross-border regulated market - one rule book </li></ul><ul><li>One single cross-border trading platform </li></ul><ul><li>Borderless: </li></ul><ul><li>Companies are classified in alphabetical order and identified on the basis of capitalization rather than on geographic location </li></ul><ul><ul><ul><ul><li>Large caps (group A: > €1 billion) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Mid caps (group B: between €150 million and €1 billion) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Small caps (group C: less than €150 million) </li></ul></ul></ul></ul><ul><li>Equal opportunity for international companies to join key indices </li></ul>
    11. 11. Eurolist – key features <ul><li>Language </li></ul><ul><ul><li>English – fully accepted for entire listing process and documentation, including prospectus </li></ul></ul><ul><li>Listing instruments </li></ul><ul><ul><li>Shares </li></ul></ul><ul><ul><li>Depositary Receipts (EDR, GDR, ADR) </li></ul></ul><ul><ul><li>Corporate bonds </li></ul></ul><ul><ul><li>Derivative instruments, including Convertibles, Options, Warrants and Futures </li></ul></ul><ul><li>Currency of listing </li></ul><ul><ul><li>Euro - the world’s second most important currency </li></ul></ul><ul><ul><li>Or any other major currency </li></ul></ul><ul><li>Regulatory environment – tailor-made for cross-border business </li></ul><ul><ul><li>Sound regulatory framework – provides credibility </li></ul></ul><ul><ul><li>No Sarbanes Oxley regulation! </li></ul></ul>
    12. 12. Eurolist – flexible services for issuers <ul><li>Broad service offering </li></ul><ul><li>Pre-listing: </li></ul><ul><ul><li>Support during the listing process </li></ul></ul><ul><ul><li>Support with company roadshows </li></ul></ul><ul><li>Post-listing: </li></ul><ul><ul><li>Ensuring orderly trading of listed shares and other securities </li></ul></ul><ul><ul><li>LP (Liquidity Provider) programme </li></ul></ul><ul><ul><li>Ensuring the timely dissemination of information to market participants </li></ul></ul><ul><ul><li>Maintaining the market indices </li></ul></ul><ul><ul><li>Access to Euronext.liffe derivatives market </li></ul></ul><ul><ul><li>Euronext.club: on-line web tools available to each issuer with shareholder and market information </li></ul></ul><ul><ul><li>Support for the smooth running of corporate actions </li></ul></ul><ul><ul><li>Investor relations support and education </li></ul></ul>
    13. 13. Legal Marketing Due diligence Required financial statements Positioning Valuation Deal structure Prepare prospectus Apply for listing & regulatory approval (through listing agent) Analyst meeting Presentation material and Q & A practice Pre-marketing to institutions Euronext Listing admission Regulator Prospectus Book building Road show and marketing to investors Appoint listing agent / Lead manager Price fixing Allocation Trading T– 30 to 90 days T– 14 days T– 3 to 6 months Listing and IPO process Euronext involvement List on Eurolist Start trading
    14. 14. Alternext the junior market
    15. 15. Alternext – the junior market <ul><li>Why Alternext? </li></ul><ul><ul><li>More than 1m €uro-zone SMEs eligible… </li></ul></ul><ul><ul><li>… but substantially fewer than 1% listed! </li></ul></ul><ul><li>Alternext is an exchange-regulated market; </li></ul><ul><ul><li>Designed for small and mid sized companies </li></ul></ul><ul><ul><li>Open for companies from all sectors and countries </li></ul></ul><ul><ul><li>Launched in France in May 2005, Belgium in June 2006, The Netherlands in November 2006. </li></ul></ul><ul><ul><li>Broad €uro-zone access </li></ul></ul><ul><ul><ul><li>Same 4-country trading platform for Eurolist and Alternext </li></ul></ul></ul>
    16. 16. Alternext – key listing requirements <ul><li>2 year company track record (exempt for funds) </li></ul><ul><li>IFRS or local GAAP with IFRS reconciliation tables </li></ul><ul><ul><li>Audited FY accounts, un-audited 6 months report </li></ul></ul><ul><li>Market access: </li></ul><ul><ul><li>Fast track dual listing through recognised market status </li></ul></ul><ul><ul><li>Access via offering circular for companies listed on another market </li></ul></ul><ul><li>Ongoing obligations simplified </li></ul>Offering circular Not cleared by regulator; disclosures under responsibility of the Listing Sponsor & Issuer Prospectus cleared by regulator EU Prospectus Directive Minimum placing: € 5m Minimum free float: € 2.5m Private placement Access to qualified investors only Public offering Access to retail and/or qualified investors
    17. 17. Alternext - Listing Sponsors <ul><li>Use of a Listing Sponsor is mandatory </li></ul><ul><li>Two main roles as the listed company's long-term partner : </li></ul><ul><ul><li>Support the company in preparing for listing </li></ul></ul><ul><ul><li>Ensures company fulfils ongoing obligations </li></ul></ul><ul><li>No fees to be Listing Sponsor </li></ul><ul><li>Requirements to become a Listing Sponsor : </li></ul><ul><ul><li>2 years relevant experience </li></ul></ul><ul><ul><li>Liability insurance </li></ul></ul><ul><ul><li>Fill in application form </li></ul></ul><ul><li>Currently 55 Listing Sponsors registered…and counting </li></ul>
    18. 18. Alternext – sector breakdown* Alternext has achieved its target as a broad marketplace for SMEs * Market capitalisation, January 2007 - ICB (Industry Classification Benchmark)
    19. 19. Alternext – size profile <ul><li>Alternext’s target company size of €20m - €250m achieved. </li></ul><ul><li>No micro-caps… …better liquidity </li></ul>
    20. 20. Alternext – market structure and liquidity Source: Euronext & LSE. *Q4 2006 Alternext today Alternext vs AIM Liquidity* 66% 72% Overall velocity 168 687 Average monthly number of transactions per stock Mainly market maker dependent Hybrid: option of orderbook or market maker Trading model € 30m € 34m Median market cap 28% 35% Percentage of stocks with greater than 50% velocity - 0.2% 28% All-share performance 2006 € 80m € 46m Average market cap (mean) AIM Alternext € 8.4m Average deal size € 2.7m to € 23.3m Deal size range 85 Number listed companies € 4.0 billion Total market capitalisation
    21. 21. Alternext: IPOs and investor base <ul><li>IPOs: </li></ul><ul><li>80% institutional investor participation, underpinning valuations </li></ul><ul><li>Investors: </li></ul><ul><li>Institutions from 14 countries </li></ul><ul><li>Broad continental European institutional take-up </li></ul><ul><li>Strong US-UK acceptance </li></ul>Alternext: truly pan-European
    22. 22. Alternext: Listing Sponsors Contact details: www.alternext.com Crédit du nord CM-CIC Securities Close Brothers Clipperton Finance CIC Banque CIO CFD Corporate Finance Cassagne Goirand et associés Bryan, Garnier & Co Banque Privée Fideuram Wargny Banque Palatine Banque Degroof Avenir Finance Corporate Aurel Leven Securities Atout Capital Arkéon Finance Amsterdams Effectenkantoor Allegra Finance Aélios Finance Kepler Equities Kempen & co KBC Securities IXIS Midcaps Invest Securities Intuitu Capital ING Belgium ING Bank NV IBI H & Associés Grant Thornton Global Equities Fortis First Dutch Capital Fideuram Wargny Exco Euroland Finance EFI Vizille Capital Finance Teather & Greenwood Sodica Société Générale SNS Securities Résalliance & Associés Rabobank Portzamparc Société de Bourse Petercam OTC Securities Oddo Corporate Finance NIBC Nextcap Nexfinance Natexis Bleichroeder L'Lione & Associés KPMG Corporate Finance Leleux Associated Brokers
    23. 23. Sectors
    24. 24. Sector profile: Financials Capital raised 2006: € 15.2 billion / 33 IPOs Recent deals: SNS Reaal, KKR Private Equity Investors, AP (Apollo) Alternative Assets Source: Euronext & LSE, ICB classification, September 2006 Euronext figures include Alternext, LSE figures include AIM 27.6 PE ratio - sector 14.7 PE ratio - FTSEurofirst 300 174 Number of stocks 26% % total market 725,677 Sector market cap (million EUR) 91 276 Average value traded (Sep 06, million EUR) 60 315 Median market cap (million EUR) 1,727 4,171 Average market cap (million EUR) LSE Euronext Per stock profile
    25. 25. Sector profile: Real Estate Capital raised 2006: € 1.85 billion / 20 IPOs Recent deals: Icade, Prologis, Eurocastle Source: Euronext & LSE, ICB classification, December 2006 Euronext figures include Alternext, LSE figures include AIM 34.9 PE ratio - sector 14.7 PE ratio - FTSEurofirst 300 89 Number of stocks 3% % total market 95,803 Sector market cap (million EUR) 26 30 Average value traded (Sep 06, million EUR) 198 202 Median market cap (million EUR) 738 1,076 Average market cap (million EUR) LSE Euronext Per stock profile
    26. 26. Sector profile: Utilities <ul><li>Capital raised 2005: € 11.1 billion </li></ul><ul><li>Recent deals: EDF, Gaz de France, Elia </li></ul>Source: Euronext & LSE, ICB classification, September 2006 Euronext figures include Alternext, LSE figures include AIM 14.7 PE ratio – FTSEurofirst 300 17 Number of stocks 33.3 PE ratio – Electricity (sub-sector) 28.4 PE ratio – Utilities 4% 10% % total market LSE Euronext 123,762 217,072 Sector market cap (million EUR) 363 368 Average value traded (Sep 06, million EUR) 5,157 12,769 Average market cap (million EUR) Per stock profile
    27. 27. Sector profile: Oil & Gas <ul><li>Capital raised 2006: € 1.1 billion </li></ul><ul><li>Recent deal: Galp Energia </li></ul>Source: Euronext & LSE, ICB classification, December 2006 Euronext figures include Alternext, LSE figures include AIM 20 Number of stocks 13% % total market 395,850 Sector market cap (million EUR) 130 1,203 Average value traded (Dec 06, million EUR) 93 2,890 Median market cap (million EUR) 3,185 28,081 Average market cap (million EUR) LSE Euronext Per stock profile
    28. 28. Sector profile: Technology, Media & Telecommunications Capital raised 2006: € 1.4 billion / 36 IPOs Recent deals: Neuf Cegetel, TomTom, Assima Source: Euronext & LSE, ICB classification, September 2006 Euronext figures include Alternext, LSE figures include AIM 14.7 PE ratio - FTSEurofirst 300 34.6 PE ratio - sector 257 Number of stocks 12% % total market 306,930 Sector market cap (million EUR) 43 140 Average value traded (Sep 06, million EUR) 27 75 Median market cap (million EUR) 630 1,194 Average market cap (million EUR) LSE Euronext Per stock profile
    29. 29. Sector profile: Biotechnology & Pharmaceuticals Over € 400m capital raised in 2005, € 158m raised 2006 Recent deals: Ipsen, Exonhit Therapeutics, Galapagos Source: Euronext & LSE, ICB classification, September 2006 Euronext figures include Alternext, LSE figures include AIM 21.2 PE ratio - sector 28 Number of stocks 14.7 PE ratio - FTSEurofirst 300 4% % total market 114,463 Sector market cap (million EUR) 107 332 Average value traded (Sep 06, million EUR) 55 297 Median market cap (million EUR) 2,373 4,088 Average market cap (million EUR) LSE Euronext Per stock profile
    30. 30. Case Studies
    31. 31. Eurolist case study: Prologis European Properties (1/2) Activity: Prologis European Properties (PEP) is an externally managed real estate investment fund. Portfolio consists of 281 high quality distribution facilities comprising 5.4 million sq metres of leasable space in 11 countries, valued at € 4.2 billion as of June 2006. Deal size (22 Sept 06): Valuation: € 2.7 bn Offer price: € 14.35 (12% premium to 30-Jun-06 NAV) Funds raised: € 715m (incl. € 65m greenshoe) Free float: 29.5% Deutsche Bank and Morgan Stanley – joint global co-ordinators and bookrunners. Largest European real estate IPO YTD ’06 & 2 nd largest European real estate IPO ever.
    32. 32. Eurolist case study: Prologis European Properties (2/2) <ul><li>Share price +18% after first 4 months </li></ul><ul><li>Index inclusion: AEX Real Estate, AEX Financials </li></ul>Broad take-up by geography: “ The deal attracted long-only specialist real estate investors from all around the world…” IFR, 23 September 2006 <ul><li>Reasons for choosing Euronext: </li></ul><ul><li>Assets & continuing growth in the Euro-zone </li></ul><ul><li>Only major exchange to accept ‘Fonds Commun de Placement’ (FCP) structure </li></ul>
    33. 33. Eurolist case study: KKR Private Equity Investors (1/2) Features: KKR Private Equity Investors is a Guernsey limited partnership investment vehicle created by KKR (Kohlberg Kravis Roberts), the US private equity firm . - Listed closed-end fund - 75% assets invested in KKR funds / 25% in opportunistic investments - KKR has a 30 year track record of superior investment returns IPO date – 3 rd May 2006: Funds raised: $5 billion Raised over 3 times original target Offer price: $25.00 (approx. NAV) Joint global coordinators and bookrunners: Morgan Stanley, Citigroup, Goldman Sachs
    34. 34. Eurolist case study: KKR Private Equity Investors (2/2) <ul><li>Reasons KKR selected Euronext as its listing venue: </li></ul><ul><li>“ Euronext gives global investment focus and global investor base” </li></ul><ul><li>No restrictions on investment in a single project </li></ul><ul><li>Limited partnerships can list on Euronext Amsterdam </li></ul><ul><li>Flexible corporate governance code </li></ul>Broad take-up by style and geography:
    35. 35. Eurolist case study: TomTom NV (1/3) Activity: TomTom is a leading provider of personal navigation products and services to the consumer mass market. TomTom products include integrated devices, which enables navigation right out of the box (eg screen in car) and non-integrated solutions for navigation on third-party devices like PDAs and smartphones. Key figures (2004): Revenues: € 192.4m Net profit: € 27.7m Deal size (June 05): Valuation: € 1,857m PE ratio: x67 Price/Sales: x9.2 Funds raised: € 467m (of which capital increase of € 124m) 10x oversubscribed Goldman Sachs International and Lehman Brothers acted as joint leads.
    36. 36. Eurolist case study: TomTom NV (2/3) Allocation by Style Allocation by Geography Share Allocation
    37. 37. Eurolist case study: TomTom NV (3/3) <ul><li>Share price +80% in first year, outperforming index </li></ul><ul><li>Free float: 29% </li></ul><ul><li>Trading activity (daily average): € 19 million / Velocity: 200% </li></ul><ul><li>Index inclusion: AEX, Next150 </li></ul>
    38. 38. Alternext case study: Assima plc (1/2) <ul><li>UK-based Assima was founded in 2002 and publishes software for training and learning. </li></ul><ul><li>In 2005, Assima was the fastest growing company in the UK*. </li></ul><ul><li>Geographically, net sales breakdown as follows: United Kingdom (52.1%), Europe (29.2%) and other (18.7%). </li></ul>Key figures (2005): Revenues: € 12.6m Net profit: € 291,000 Deal size – 17 October 2006: Valuation: € 37.5m Funds raised: € 5.5m PE ratio: x130 Price/Sales: x3 Good take-up for the private placement among French institutional investors Listing Sponsor: Avenir Finance Corporate *Source: Daily Telegraph/Library House
    39. 39. + 12.5% Facts & Figures <ul><li>First UK company to join Alternext </li></ul><ul><li>Current valuation of € 42.2m </li></ul><ul><li>Valuation 12.5% above issue price </li></ul>Alternext case study: Assima plc (2/2) <ul><li>Reasons for choosing Euronext: </li></ul><ul><li>Enhance corporate profile </li></ul><ul><li>Better access to develop pan-European activities </li></ul><ul><li>“ Euro as acquisition currency to finance growth in the Eurozone” </li></ul>
    40. 40. Why Euronext?
    41. 41. Why Euronext? <ul><li>Gateway to the €uro-zone </li></ul><ul><ul><ul><li>Publicity: cross-border access to investors, customers & business partners </li></ul></ul></ul><ul><ul><ul><li>Acquisition currency: €uro – a key currency </li></ul></ul></ul><ul><ul><ul><li>Huge pool of assets under management </li></ul></ul></ul><ul><ul><ul><li>Single entry point gives broad European access for listing and trading </li></ul></ul></ul><ul><li>Leading cross-border exchange with a pan-European reach </li></ul><ul><ul><ul><li>Top-ranked globally for capital raising </li></ul></ul></ul><ul><ul><ul><li>L argest central orderbook trading volumes in Europe </li></ul></ul></ul><ul><ul><ul><li>International companies can join local indices </li></ul></ul></ul><ul><ul><ul><li>Broad service offering for early stage and mature companies </li></ul></ul></ul>
    42. 42. International Listings department : <ul><li>Martine Charbonnier </li></ul><ul><li>Executive Director – Listing & Issuer Relations </li></ul><ul><li>Phone: +33 14927 1608 </li></ul><ul><li>Email: m.charbonnier@euronext.com </li></ul><ul><li>Nathanael Mauclair </li></ul><ul><li>Deputy Director – International Listings </li></ul><ul><li>Phone: +33 14927 5372 </li></ul><ul><li>Email: n.mauclair@euronext.com </li></ul><ul><li>Aaron Goldstein </li></ul><ul><li>Deputy Director – International Listings </li></ul><ul><li>Head of Russia Business Development </li></ul><ul><li>Phone: +44 20 7379 2907 </li></ul><ul><li>Email: a.goldstein@euronext.com </li></ul><ul><li>James Posnett </li></ul><ul><li>Manager – International Listings </li></ul><ul><li>Phone: +44 20 7379 2577 </li></ul><ul><li>Email: j.posnett@euronext.com </li></ul><ul><li>Erik Wenngren </li></ul><ul><li>Director – International Listings </li></ul><ul><li>Phone: +44 20 7379 2087 </li></ul><ul><li>Email: e.wenngren@euronext.com </li></ul><ul><li>Kang Pan (Mr) </li></ul><ul><li>Deputy Director – International Listings </li></ul><ul><li>Head of China Business Development </li></ul><ul><li>Phone: +44 20 7379 2085 </li></ul><ul><li>Email: k.pan@euronext.com </li></ul><ul><li>Duco Wildeboer </li></ul><ul><li>Manager – Listings, Amsterdam </li></ul><ul><li>Phone: +31 20550 4173 </li></ul><ul><li>Email: d.wildeboer@euronext.com </li></ul><ul><li>Yin Yee Chan (Ms) </li></ul><ul><li>Analyst – International Listings </li></ul><ul><li>Phone: +44 20 7379 2746 </li></ul><ul><li>Email: yy.chan@euronext.com </li></ul>www.euronext.com/listing