The CNMV’s Chairman, Carlos San Basilio, and BME’s CEO, Juan Flames, presented a new, more flexible and simpler method for initial public offerings, called BME Easy Access, at an event held at the Madrid Stock Exchange on May 21st. The event was attended by more than 200 people from the financial sector.

At the conference, Carlos San Basilio stressed that “it is necessary to rethink stock market development policies in order to revitalise public markets, stock exchanges. We need measures targeted at demand, such as retrieving retail investors to increase liquidity; as well as measures targeted at supply, such as the initiative we are presenting today: Easy Access, so that we can facilitate the IPO process for our companies.”

As for Juan Flames, he stated: “We hope that BME Easy Access can speed up the processes that will help underpin decision-making at one of the most decisive moments in the growth stages of a company’s life: the IPO, and that we will soon see several companies using it, ringing the bell on the stock market.”

Details of this new method were explained by Javier Ruiz, Director of the Secondary Markets Department at the CNMV, and by Álvaro Castro, Director of Primary Markets at BME. Lastly, a discussion joined by Ángel Benito, Markets Director General at the CNMV, and Jorge Pereiro, Director of Primary Markets Department, was held. Moderation of this discussion was carried out by Pilar Martínez, Director of Public Affairs at BME.

The purpose of BME Easy Access is to make the current system more flexible and to facilitate companies’ access to the stock market. Thus, Spain becomes the first country to implement this method and to bring forward some of the measures established in the Listing Act approved by the EU for the revitalisation of public markets.

Specifically, this new procedure will allow for the direct admission of shares in regulated markets without obtaining a free float prior to admission.

This method is also included within OECD’s recommendations for the revitalisation of the Spanish capital markets, including those related to promoting the conditions for the admission and trading on the stock market.

Further information can be found in the press release, the presentation and in Carlos San Basilio’s speech.

Here you can watch the video of the event.