How Going Public Helps Your SME

How Going Public Helps Your SME

Grow your SME on SIX Swiss Exchange.

Your Partner for a Successful Future

Whether you’re moving from successful start-up to scale-up, seeing disruptive technologies deployed in your industry, wanting to grow your existing stable business, or experiencing the effects of new laws and regulations: The game is changing – and intensifying.

Staying on your exponential growth path will become increasingly challenging. Success breeds competition and copycats. Public markets can help you master the challenges ahead and “put a ding in the universe” (Steve Jobs). Give yourself the best shot at winning. Unlock the power of public markets to best equip your SME for what’s on the horizon.

How Your SME Grows Stronger with Public Markets

We are uniquely positioned to help you grow faster and out-innovate your competitors, whatever your stage of development may be and regardless of whether you need to raise capital right now. Public markets offer multiple distinct advantages to your SME. Through the IPO, you broaden your shareholder base, increase your visibility, benefit from Swiss takeover protection and you can also spin off certain business areas and list them separately. And most importantly for you as a fast-growing SME, an IPO allows you to:

We Are Convinced That SMEs Belong on the Stock Exchange

A SIX Swiss Exchange listing isn’t for every SME. But it is the right next step for more SMEs than you may think. Can the distinct advantages of public markets help your SME grow stronger? Do you want to enable anyone to invest in your SME? Are you looking to facilitate trading of your SME’s shares? Or do your investors demand the regulatory transparency and oversight offered by public markets? Then your SME belongs on the stock exchange.

SMEs: Why Go Public on SIX Swiss Exchange?

The Swiss stock exchange is one of Europe’s leading exchanges and your ideal partner for accessing public markets. We have an impressive track record of empowering world-leading corporations.

Streamlined, straightforward and efficient: By listing at SIX Swiss Exchange, you ensure you go public in the most efficient way possible. Switzerland is one of the world’s leading financial centers, celebrated for its strength, reliability and stability. By listing with us, you benefit from banks with high placement power, first class services, our fast and straightforward listing process, direct access to a deep pool of both Swiss and international investors as well as an innovative and liquid stock exchange.

What It Takes to Go Public

You won’t be surprised to hear that a listing is not for free. “Nothing of value is free” after all. But going public is not as insurmountably complicated, expensive, and time-consuming as you may think.

Are you worried that a listing will take too much time for your SME’s key people? Don’t be. You can always mandate an expert to manage your listing project from start to finish.

Have you heard that a listing can take anywhere from three to four months to a year or more? You heard right. Some companies are readier than others. But don’t let this hold you back. You can make small adjustments starting from today that will substantially reduce complexity and duration when you later launch your IPO project.

Are you unsure about where to start? Don’t be, we have you covered. We recommend you contact our experts to discuss the next steps. Through a quick call, we can guide you through the requirements and the plan for listing your SME, and help you transition and adjust to life as a listed company. 

What SIX Offers You For Going Public

Contact Our Experts

Are you wondering if getting listed at the Swiss stock exchange is the right step for your SME? Are you unsure what the advantages are and what it takes? Then get in touch with our experts. They are happy to answer your questions. 

What It Means to Be Public

To reap the advantages of being a listed company – from faster capital raising, to a stronger profile, and more resilience – some further work is required from your SME after its successful listing. Some of this is legally required, while other tasks are highly recommended to get the most out of being a public company. But like the listing itself, they are not as insurmountably complicated, expensive, and time-consuming as you may think.

Most notably, your listed SME will have to make some adjustments in terms of what and how it communicates with the market. Besides regular reporting obligations, your SME needs to inform the market when certain events occur. Additionally, your SME may also need to spend some time explaining the rationale of its strategy to investors.

Resources

What resources does a company need in order to meet capital market expectations?

It is frequently the case that at smaller companies, an existing employee – usually from the finance department – is responsible for reporting and maintaining investor relations. A comprehensive capital market communication and investor relations strategy always requires the involvement of the CEO and/or CFO, and in certain areas – especially corporate governance – the board of directors as well.

Depending on a company’s situation, it is recommended to create a dedicated investor relations role, as state-of-the-art communication with investors and analysts requires a specific skill set and expertise. Experienced investor relations officers not only maintain close contact with the sell-side and sales teams at brokers, but they also communicate with buy-side analysts and potentially interested portfolio managers at institutional clients. This makes the company more visible in the capital market and having a professional capital market communication strategy in place helps develop a uniform understanding of the company and the services it provides.

Scope

The necessary content and frequency of reporting is set out in the Listing Rules and other applicable regulations, which are listed on the SER website.
An e-learning module specifically developed by the Swiss Stock Exchange helps companies check and keep up to date their knowledge of the various reporting obligations. Voluntary reporting – that is to say meeting non-regulatory requirements – can represent a real opportunity for listed companies.

Why should companies go beyond their regulatory requirements and provide voluntary reporting?

Nowadays, the capital market expects further activities in addition to annual and interim reports, such as analyst presentations, individual investor meetings etc. For the company, this means additional effort, but this further reporting should be seen as an opportunity: Those who design their communication and reporting strategy accordingly can promote a holistic understanding of the company among stakeholders and strengthen their trust.

In addition, customers, (potential) employees and business partners are increasingly looking for specific information in the annual report and other publications. Here, too, non-financial, more detailed reporting can offer the company advantages.

What does that mean in detail?

Companies compete against each other for the attention of various stakeholder groups. As such, it is vital that it is easy to identify a company’s purpose and its strategy. An intuitive business model shows how value is created, maintained or lost.

It is also important to identify international trends in corporate communication, as over time, many of these establish themselves as best practices even for smaller companies, for example strategically relevant ESG content.

Unexpected developments and setbacks

What happens when an unexpected change occurs?

The company must continually adapt its equity story and communication in line with the current situation, also with regard to future potential. If potentially price-relevant facts emerge, these have to be communicated immediately via an ad hoc announcement.

How should a company deal with setbacks?

Companies can boost credibility and trust if they communicate with investors in a transparent, forward-looking way.

Investors do not like surprises, especially those caused by setting unrealistic expectations. They expect companies to deliver on their promises, or at least for them to immediately communicate any changes and the impact these may have on their investment.

Scale-ups

What does the CCR recommend for younger, fast-growing SMEs?

In addition to meeting their regulatory requirements, a company should have an in-depth knowledge of its stakeholders; this allows it to tailor its communications and to provide information to them via their preferred channels. Stakeholders expect companies to have a future-oriented reporting strategy – it is no longer enough to simply look back on past events.

Author: Center for Corporate Reporting (CCR).

We believe the planned IPO will allow us to further increase awareness and visibility of Medacta and facilitate access to international talent. Our family and myself will remain strong majority shareholders in the long term and remain fully committed to Medacta and its patient-centred and innovative culture.

Francesco Siccardi, CEO, Medacta Group SA 11. March 2019

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