(Finance) – At the end September 2023 the market Euronext Growth Milan (EGM) understood 197 companies, including 27 new IPOs in the first nine months of the year, up from 17 stock market landings in the same period in 2022. EGM companies raised €278 million in IPO proceeds, averaging €10.3 million. This is what emerges from the half-yearly analysis of the EGM, the Italian Stock Exchange market dedicated to SMEs with high growth potential, conducted by the Analysis and Research Team of Bank Profile.
During this time, 2 companies moved from EGM to STAR segment (Unidata And Cy4gate), while 3 companies moved from EGM to the segment Euronext Milan (Technoprobe, Digital Value And Comer). The average market capitalization is 41 million euros, while the total market capitalization is 8 billion euros.
In relative terms, over the last 12 months EGM is down 6%, underperforming the STAR which fell by 2.8%, and the FTSE Italia All Share which rose by 27.7%.
88% of companies have one size less than 100 million euros, with more than a quarter in the 10-25 million euro range in terms of market capitalization. The revenue distribution is similar, with 90% of companies below €100 million and less than a quarter in the €10-25 million range.
There liquidity remains the “critical problem” in the EGM, with over 55% of companies trading less than 0.1% of their market capitalization (average daily data for the last 3 months), we read in the analysis signed by Francesca Sabatini (Head of Equity Research), Eleonora Chetrì (Equity Research Analyst) and Michele Calusa (Equity Research Analyst).
The M&A operations are growing in the EGM with a peak in 2022: 42 companies have completed at least one acquisition. 39 companies completed at least one acquisition during the first nine months of 2023, with a total of 57 operations (including 10 deals in 3Q23), compared to 65 deals in fiscal 2022.