In the second half of 2023, Spain will take over the rotating presidency of the EU. And one of the important legislative developments planned for this mandate is the so-called Listing Act, the new European regulation to promote the flotation of companies on the stock exchange. To this end, it is proposed to reduce deadlines, lower fees and simplify procedures.
The new Listing Act dossier will promote IPOs with a number of measures:
The recent stock market law that has just been passed in Congress is also intended to encourage the stock markets with the arrival of new companies.
On the one hand, it reduces issuing prospectuses for fixed-income securities such as corporate bonds. On the other hand, it incorporates the figure of SPACs (Special Purpose Acquisition Companies) into Spanish regulations. This is a formula originating in the United States that allows for a fast-track listing. The mechanism consists of listing an empty company on the stock exchange with the aim of merging it with a traditional company, which is automatically integrated into the stock exchange. Some Spanish companies are already taking advantage of this formula. For example, the Catalan company Wallbox is listed in New York thanks to a SPAC.
The National Securities Market Commission (CNMV) has also been working for some time to facilitate the IPO of Spanish companies. Such as the formula implemented two years ago that exempts listed companies from providing quarterly information.
The supervisor is strongly committed to reducing bureaucratic burdens. It therefore seeks to limit the amount of information required from listed companies while preserving shareholders’ rights to know the details and performance of their investments.
The CNMV has also proposed a reduction in the fees it charges companies for going public. The body accumulates a surplus of €12 million that goes to the Treasury and considers that this money would be more useful if it were used to reduce the burden on companies.
And its chairman Rodrigo Buenaventura has even recently proposed that unlisted companies should also be required to report on aspects such as financial information on sustainability. The aim is to prevent unaccountability from giving them a significant competitive advantage over listed companies.
The Spanish Securities and Exchange Commission (CNMV) estimates the investment needed to meet the challenge of the energy transition and digitalisation at 300 billion euros. However, banks are only in a position to provide 100 billion. To reach the rest of the financing, the entity points out that one of them must be the stock markets.
Finally, it should be noted that although its horizon is more long term, there is also a proposal for a European directive which aims to bring the tax burden of market transactions in line with that of interest on bank debt. It is known as the Debra directive.
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