News is just out that SIX Swiss Exchange is about to launch a new segment called Sparks dedicated to small and medium-sized enterprises (SMEs). This is a very welcome development.
Thanks to increased interest and investment in smaller businesses, a growing number of SMEs in Switzerland are ready to take the next step by going public. The new Sparks segment will enable them to do precisely this, giving them all the advantages of stock exchange listing and the added benefits of efficient access to capital, enhanced visibility, stronger peer groups and best execution for their investors. In a world where increasingly diverse sources of capital are available to innovative young businesses, this will be an extremely valuable resource that puts the Swiss financial centre on a strong footing and benefits the entire economy.
Based on the listing requirements contemplated by the SIX, we expect hundreds of fast-growing companies (some of them already traded on Swiss OTC platforms) with valuation or market capitalisation starting below CHF 100 million to be credible candidates to benefit from the new Sparks segment and to be able to continue on their growth path.
We at PwC have a strong tradition of helping SMEs maximise their potential. If you’re wondering what opportunities this move might mean for your business, talk to us.