Euronext has set up a new technology segment to help the sector’s leading companies gain more visibility across the continent’s asset managers and other investors.
The pan-European stock exchange said on Tuesday that its top growth and tech company listings such as ASML, Just Eat Takeaway.com, Tom Tom and Ubisoft now form a new segment, called Euronext Tech Leaders, which can be tracked by a dedicated new index from July.
They must have a minimum of €300 million euros in market capitalisation and a minimum growth rate to be included, with no performance criteria for those with a market capitalisation of more than €1 billion.
Euronext said the new segment will provide advisory and communication services “to raise the international profile of listed European tech companies”.
It will also offer pre-listing services and executive training to help promising, privately-held companies float on the stock market.
A European Nasdaq?
Europe has long sought to foster ‘homegrown’ tech giants to compete with Nasdaq, which is typically the favoured exchange for global tech listings.
“We do not compete with Nasdaq,” Stephane Boujnah, Euronext’s chief executive, told reporters. “What we are trying to develop here is a fundamentally different approach”.
The aim is to defragment tech listings which are spread across national markets to give them a European profile and offer a sector-wide view to investors, Boujnah said.
Neuer Markt, a special tech segment on Deutsche Boerse in Frankfurt was set up in 1997 as Europe’s answer to Nasdaq, but it collapsed just five years later as the dotcom bubble burst.
Attempts by the European Union to deepen its capital market intensified after Britain left the bloc and began to attract more listings to London and compete with the Amsterdam exchange run by Euronext.
Euronext, which runs the stock markets of Paris and Amsterdam among others said, it has over 700 listed tech companies with a total market capitalisation of more than €1 trillion.
Of the total 212 new equity listings last year, more than half came from the tech sector, it said.