Although the new bells in the Spanish stock market have diminished to zero in recent years, there remains a path for hopeful companies through a dedicated listing venue. Unlike the steady market in 2022, where only Opdenergy stood out, BME Growth hosted 15 names up to 134. In the first half of 2023, five firms—Greening, Miciso Real Estate, Ktesios Real Estate, Milepro, Cox Energy—began trading here, with Indexa Capital expected to join the roster. If the year stays on course, more listings are likely on the SME exchange. What draws more attention to this market beyond its apparent permanence?
The primary factor is the company size. A Spain-centric business landscape has long relied on small firms that struggle to scale, notes XTB analyst Joaquín Robles. The market’s free float requirement sits at a minimum of 25% with a minimum trading volume, which makes BME Growth comparatively affordable for smaller enterprises.
To go public, a company must cover a non-trivial issuance cost beyond its nominal value. In response, the National Securities Market Commission (CNMV) announced cost reductions in November to encourage SME listings. Francisco Blanco, co-founder of Sigma Rocket, emphasizes that going public is easier now than two decades ago, which helps explain the rising visibility of BME Growth.
Access to finance
SMEs turn to BME Growth for several reasons. Greening lists to fund its expansion, Indexa Capital seeks capital for future operations such as acquisitions, and Ktesios and Milepro aim to support growth through share listings or broaden investment bases. CEO Enrique Riquelme noted that Cox Energy’s initial launch will connect with more investors and raise shareholder visibility and returns.
These entities, as Socimis, share ownership and activity within the real estate sector. Robles points out that legacy companies are drawn to BME Growth for its favorable tax treatment, while energy-focused businesses pursue larger financing pools for capital-intensive projects. Liquidity tends to be modest, and trading is often concentrated in limited windows each day, with fewer pronounced price moves.
Overall, BME Growth ended June with a 2.28% decline to 1,934.60, still showing a 50.8% increase since the market’s lockdown lull in March 2020.
Ultimately, the listings on this market represent small, fast-growing firms that can mature quickly within three to four months, using BME Growth to build credibility. The challenge, Blanco repeats, is persistence. Practices like publishing company expectations and delivering regular investor updates are essential. If quarterly results are not published, a six-month gap without notice can erase momentum, a risk illustrated by EiDF, which faced a suspension when its new auditor declined PwC’s approval to close accounts.
The end of the departure drought?
Despite solid recent market performance, including Ibex 35 reaching year highs after a banking crisis in March, tightening monetary policy and uncertainty about the global economy suggest the IPO drought may persist. That outlook could delay plans for potential entrants like OKMobility and Cirsa, as well as Tendam and Idealista. Cosentino also postponed exits amid capital-market volatility and related concerns.
Yet for BME Growth, signs point to ongoing interest. Renta 4’s César Sánchez-Grande highlights that, given the international economic climate and expectations of a slowdown, market conditions must not deteriorate drastically for continued list activity. The message from Blanco remains optimistic: BME Growth will keep attracting corporate interest in the coming years, with exits typically clustered around late summer and autumn. He adds that several companies are still in the process of preparing their documentation.