WASME SUPPORT FOR SMALL AND MEDIUM ENTERPRISES (SMEs) GOING PUBLIC

Sponsors pre-finance IPO cost for small, young and growing companies

The Representative in Vienna of WASME World Association of Small and Medium Enterprises, Norbert W. Knoll-Dornhoff, presented on occasion of his meeting on 21st August 2007 with the Austrian Commercial Counsellor in Budapest, Mr. Peter Rejtö, WASME’s proposal of supporting Small and Medium Enterprises (SMEs) to raise equity capital by going public with an Initial Public Offering (IPO).

Mr. Rejtö encouraged WASME to advise SME Member Organisations to inform their clients about the new possibilities of the Vienna Stock Exchange (Wiener Börse) which has launched a new market segment, the mid-market segment. It is specifically tailored for smaller and medium-sized enterprises with lower financing requirements.Two distinct features characterise this particular segment: Companies may choose either between a listing on the regulated market (including the Official Market and the Semi-official Market) and a listing on the unregulated market (the so-called Mid Market). Any company intending to be listed on the mid-market segment must appoint a Capital Market Coach (CMC). The primary tasks of the CMC include an evaluation as to whether the company is fit for the mid-market segment, support through the going-public process and ongoing assistance during the company's life as a listed entity.

The new SME Going Public Support is based on an agreement with WASME Sponsors in Germany and Switzerland who offered IPO – able companies to pre-finance the IPO cost currently estimated at EUR 150 – 200 thousand EURO. In return the Sponsors would receive new stocks as a success premium.

Knoll-Dornhoff announced an information summit for SME Organisations, Financial Consultants, Banks and Chambers of Commerce which will be held in Budapest in the second week of November under the patronage of the Austrian Commercial Counsellor. IPO experts will inform about The Mid Market in Vienna and about the Entry Standard at the Frankfurt Stock Exchange and The Alternative Investment Market (AIM) of the London Stock Exchange.

Private equity and venture capital investors can use Mid Market, Entry Standard and AIM as an exit route, said Knoll-Dornhoff. Within the Open Market, the Entry Standard offers increased visibility and a showcase for companies that voluntarily agree to provide the market with more information. Currently, shares of around 5,900 German and international companies are traded on the Open Market, alongside 4,200 bonds. One of the advantages of AIM companies is that for tax purposes. If one holds shares for four years or more, the tax rate falls to 10%.

IPOs are also accessible and a particularly attractive option for fast growing and established small to mediumsized Companies in developing Countries, e.g in India and China who seek co-operation with European partners. It is one of the main tasks of WASME in Vienna, assured the WASME Representative, to assist interested SMEs on their way to expansion and globalisation.

WASME World Association for Small and Medium Enterprises
Representative Office Vienna
A-1140 Vienna, Bujattigasse 13
+431-2162373-20
mailto: wasme-vienna@lycos.de
URL: www-wasme-unido.at.tt
Dr. Norbert W. Knoll-Dornhoff
Permanent Representative

WASME is an international civil society organization in consultative status with UNIDO United Nations Industrial Development Organization. WASME has 75 member organizations in five continents representing Small and Medium Enrterprises (SMEs).

This release was published on openPR.