IR Top, Equity Markets Partner of Borsa Italiana – LSE Group, analyzed the impact of the PIRs on AIM Italia, drawing up the first balance one year after the introduction of the legislation. Based on the market capitalization at the end of 2017 of €5.7 billion, on the share of the average free float of AIM equal to 22%, PIR compliant Investors hold 23%.
The comment of Anna Lambiase, Chief Executive Officer of IR Top: “The interest of investment houses in listed SMEs has increased thanks to the revision of the legislation which has made the AIM market an efficient investment opportunity also from a tax point of view. One year after the introduction of the new legislation, the PIR Funds, including Mediolanum, Arca, Azimut, Fidelity and Julius Bar, now hold a 23% share of the free float on AIM, a very positive fact because these investors follow investment logics reflecting the very nature of the PIRs, they invest in the medium-long term with a strategic purpose and they are selectors, they don't limit themselves to replicating the index but look for quality when this is recognizable. In Italy, considering that AIM represents 30% of the PIR investable universe, with 94 listed companies and a capitalization of 5,7 billion euros, in 2017 we witnessed a significant improvement in the market quality parameters traced by the increase in liquidity, a growing number of investors and business stories that already represent success stories such as Clabo which scored +254%, Fope +127%, Elettra Investimenti +107%, Smre +107%, Digital Magics +104% and WM Capital +101%. A similar phenomenon has also occurred in other countries; the experience of ISAs (Individual Savings Accounts), launched in the UK in 99, demonstrates that a portfolio made up of a group of shares listed on AIM can be "tax-efficient" and the choice of Small Cap can be decisive for financial planning . Since 1995, over 3.500 companies have been listed on AIM London, a market characterized by a successful Equity Story such as ASOS, one of the leading online fashion and lifestyle retailers listed in 2001, with an initial capitalization of 16 million euros and a current value of around 6,4, 2 billion euros; Domino's Pizza with a capitalization of 40 billion euros, approximately 717 times the value of the IPO, Mulberry with a capitalization of approximately 560 million euros and an IPO performance of +XNUMX%”.
“Expectations for the development of the market – said Lambiase – must go in the direction of selectivity and could be further strengthened by the recent introduction of the tax credit for IPO costs; the PIR-CDI combination is facilitating SMEs' access to the market to finance growth projects, as a concrete alternative to the traditional banking channel”.
One year after the introduction of the PIRs, the advantages over AIM were as follows:
INCREASE IN THE NUMBER OF INSTITUTIONAL INVESTORS IN ITALIAN MID/SMALL CAPS
New capital from PIRs, which have a 21% reserve for MID/SMALL Caps, have fueled interest in a portion of the stock market historically characterized by fewer investors than MIB companies.
INCREASE LIQUIDITY AND REDUCE THE GAP BETWEEN EQUITY AND FUNDAMENTAL PERFORMANCE
The introduction of new PIR Compliant Funds, for which there is no 5-year lock-up obligation on individual securities, has increased the liquidity of the MID/SMALL Caps, improving trading in terms of volumes and counter-value and reducing the gap between equity performance and fundamental performance of companies.
ENTRY OF NEW TYPES OF "STRATEGIC" INVESTORS
Interest in investing in the real economy of SMEs has increased and long-term investors such as pension funds, social security funds and previously absent insurance companies are starting to appear.
INTEREST OF FOREIGN INSTITUTIONAL INVESTORS
The increase in the liquidity of individual shares is generating a renewed interest of foreign investors in our financial market.
DEVELOPMENT OF THE PRIMARY MARKET WITH NEW IPOs
PIRs are generating new IPO demand, expanding the investable universe. With a more efficient market, stock exchange listing becomes a valid alternative to bank credit for Italian SMEs.
