The Alternative Stock Market (MAB) is regulated by the Spanish National Securities Market Commission (CNMV) and is specifically meant for small-cap companies looking for expansion.
As a consultant, Río Negro brings in all its experience and knowledge to help companies through the whole IPO process and subsequent listing on the MAB.
The reasons that may drive a company to look for an entry on the MAB may be:
- Access to financing for companies with limited capitalization, appropriate degree of transparency and liquidity for investors within the European context of increasingly stringent regulations upon securities markets.
- Bringing about a greater visibility of the company, particularly to clients and financiers.
- Allowing to determine the value of the company in an objective way and on a daily basis, as the market itself will set the stock price, factoring in investors’ expectations.
- Offering the owners liquidity by allowing to convert stocks into cash which does not necessarily imply losing control over the company.
The company must meet certain number of minimum requirements in order to be listed on the MAB. As a consultant, Río Negro plans out a cooperation focused on three main phases:
- Analysis of the company’s compliance with the formal listing requirements of the MAB and preparing the company for its listing registration.
- Advice on the fulfilment of all the formal requirements for entry into the MAB, in the process of hiring and coordinating other crucial elements (placement of the stock issue, liquidity providers, etc.), preparation of the articles of incorporation, etc. all the way to the IPO.
- Monitoring compliance with the periodic and one-time reporting requirements to the MAB on part of the company.