Euronext: common European prospectus to facilitate IPOs

Euronext has launched the Common European Prospectus: 'a single, standardised model for equity issues that enhances capital market integration and cross-border investment across Europe'. This was announced yesterday by the pan-European financial market and stock exchange in the Eurozone, emphasising that in order to enable European competitiveness and innovation in the long term, 'it is essential to improve access to European capital markets. Although the listing act, aimed at simplifying European listing rules, is not expected before June 2026, there is an immediate need to increase IPO activity in Europe'. To meet this need, Euronext started developing the new European Common Prospectus in November 2024, following the publication of the listing act.

On the other hand, the first quarter of the year, although it went better than the same period in 2024, saw only 17 listings in Europe with a total value of EUR 3.1 billion, according to data from Pwc Uk. In the fourth quarter of last year there had been 20 IPOs worth EUR 3.3 billion.

The new prospectus, designed for use in all countries in which Euronext operates, 'complies with current EU regulations and offers immediate benefits to both issuers and investors,' the release states. In addition, it is already available and can be used as of the next listings on Euronext's lists. It complements existing prospectus formats, such as the use of tripartite prospectuses, or the EU Growth Prospectus for SMEs and the Follow-on Prospectus, depending on the type of offering the company chooses. It is a model that simplifies and harmonises the share listing process across all seven Euronext markets (Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris), reducing complexity and preparation time for issuers by replacing the traditional 21-section structure with an 11-section one, explains the note, which continues: the prospectus uses English to improve comparability and cross-border access to capital, ensuring greater consistency for investors in all jurisdictions.

The model 'is designed to be flexible and adaptable, ensuring compliance with current regulations while being prepared to incorporate future changes under the Listing Act, which is scheduled to come into force from June 2026,' Euronext points out. The Common European Prospectus 'ensures greater consistency in the way companies present their information, supporting better decision-making in all jurisdictions. It offers the necessary consistency and comparability across EU jurisdictions'.

The aim is to enable investors to evaluate offers on the basis of a shared structure and language, facilitating the assessment of opportunities and the making of informed investment decisions irrespective of the listing venue In order to ensure broad support and practical implementation, Euronext sought the support of European stakeholders, including Ecm bankers, legal advisors, auditors, investors and issuers, the note states.