Capital Markets for SMEs: From First Steps to IPO

Over the years, the Spanish stock market has built a true “ladder” to support companies through each stage of their growth – from the earliest steps to listing on the main market. This approach allows for a seamless progression in financing for companies, extending from early stages to participation in the main market. By joining at their appropriate stage, companies can then advance, enhance, and evolve within the market ecosystem.

Read in the following article how this structure works, designed to gradually ease companies into market financing through four key stages: the Pre-Market Environment, BME Scaleup, BME Growth, and ultimately, the Main market.

For many companies, the idea of going public can be daunting. That’s why BME created the Pre-Market Environment (PME), which is aimed at companies that are interested in going public but are unfamiliar with the capital markets and the IPO process.

The PME is a training and networking program designed to help small and medium-sized companies (SMEs) understand how capital markets work, how to gain access to private and institutional investors and what it means to become a list company.

It is not a trading venue, but a preparatory space where companies receive tailored training and guidance. Through expert support and practical sessions, the Pre-Market Environment helps companies understand the financial, legal, governance, and regulatory aspects of going public. It’s the perfect way to start exploring capital markets in a safe and structured setting.

Once a company has a proven business model and enters a high-growth phase, it may be ready for BME Scaleup, the next step on the ladder. This stage provides an ecosystem tailored for companies that previously relied almost exclusively on venture capital, business angels, or crowdfunding platforms for financing

In March 2024, the first company to list on BME Scaleup, Alfil Patrimonial, made headlines with a valuation of 73.5 million euro and set the tone for a new generation of growth-stage businesses entering the public market.

BME Scaleup is especially oriented to scaleups, that is,  companies with an average annualized growth rate greater than 20% over at least three years, although it is also open to other types of companies such as SMEs, SOCIMIs or family businesses.

This market segment offers a flexible and efficient way for these companies to access the stock market, providing the necessary transparency for investors. Listing on BME Scaleup helps companies gain visibility, attract investment, and support their growth and expansion plans. 

This market adapts to the needs of these companies by making incorporation requirements more flexible, while offering the necessary transparency to investors. Among the advantages of accessing capital markets for SMEs are financing, reputation, visibility, a boost to inorganic growth and greater ease in attracting and retaining talent.

For companies that are more mature and looking for sustained access to funding, BME Growth is the ideal next step.

Launched in 2009, this middle market is specifically designed for “growth SMEs” that want to finance their expansion, attract talent, and raise their profile among institutional and retail investors.

BME Growth strikes a balance between regulatory rigor and flexibility, making it accessible yet structured enough to support a company’s development. This is the venue where SMEs can find alternative financing to traditional banking that is complementary to the business angels and venture capital that usually provide seed capital to this type of companies.

In Spain, where 99% of companies are SMEs, accounting for 65% of GDP and employing 80% of the workforce, BME Growth makes it easier for “growth SMEs” to obtain agile financing in the capital markets.

Becoming part of BME Growth implies a corporate transformation and brings with it new transparency and professionalism standards. But it also brings about a leap in quality. Among other advantages, listing on BME Growth entails enhanced visibility, greater access to investors who specialize in this type of companies, the possibility of having a reliable and daily valuation as well as an improved reputation.

Listing on BME Growth offers companies value at the time of listing, but also on a recurring basis after the listing through successive capital increases that need to be undertaken.

BME Growth also acts as a bridge that links companies with investors. On the one hand, there are attractive projects with a track record; on the other, there are investors eager to finance these projects with their money. This is the goal at the very origin of financial markets. Thanks to small business-focused markets such as BME Growth, this bridge is also open to companies of all sizes and sectors.

Listing on this market means gaining daily market valuation, enhanced corporate reputation, and long-term visibility with the investment community. It also opens the door to new opportunities like mergers, acquisitions, or even eventual entry into the main market, as several companies like Masmovil Ibercom, Carbures Europe, Grenergy Renovables, Atrys Health and Izertis have already done.

The ultimate goal for many companies is to join the main market, where the most established Spanish and international companies are listed.

Reaching this stage means a company has become a robust, professional, and trusted player in its industry. It’s a major milestone and one that’s much easier to achieve by moving step-by-step through a structured market ladder.

Listing on the main market signals trustworthiness and financial stability to the investor community, customers, and business partners. However, the benefits of an exchange listing extend far beyond the IPO. A longstanding presence on the stock market facilitates growth and stability. The resulting credibility in the investor community, the increased brand awareness, and the possibility to procure capital at any time make a stock exchange listing a strategic advantage for companies of all sizes.