Possible perspectives in the light of recent news

After the complexities experienced in the last period, a number of initiatives of different kinds could contribute to the resumption of the growth of Euronext Growth Milan (EGM), the multilateral trading system organised and managed by Borsa Italiana S.p.A., which allows companies to list under less stringent conditions than regulated markets.
The more streamlined admission procedures and generally less burdensome rules reduce listing time and related costs, making the EGM suitable for Italian SMEs seeking to capitalise to sustain their growth.
Considering the specific weight of micro-enterprises and SMEs in the Italian entrepreneurial fabric, the presence of an efficient and effective capital market dedicated to such companies certainly constitutes an opportunity for the country's entire system; however, over time, there have not been many interventions aimed at attracting businesses, on the one hand, and investments, on the other, to EGM.
On the investment side, the most significant contribution to the market in question dates back to 2017, the year in which Individual Savings Plans (PIR) were introduced, i.e. a form of investment, intended for private individuals, that entitles them to tax exemption on future capital gains accrued, provided that certain constraints are met with regard to the investments themselves.
In spite of the fact that the constraints did not include any direct reference to investments in multilateral trading systems, the PIR contributed to the growth of these systems, starting a positive trend that has only faded in the last two years.
On the corporate side, the biggest contribution dates back to the Bonus Ipo introduced in 2018, which allows for the reduction of listing costs incurred by SMEs through the recognition of a tax credit; this incentive has undergone several changes over time, especially in terms of reduced allocations, and has been renewed several times in extremis in amendments to recent budget laws, a clear sign of limited interest on the part of the Legislator.
Today's situation has not yet changed per se, but the prospects look decidedly more promising than in the recent past, especially since some initiatives could be a sign of a growing propensity towards this market.
First of all, this year the IPO bonus has not only been included directly in the budget law, but has also been renewed for a time horizon of three years (instead of just one); SMEs quoting in 2025, 2026 and 2027 will therefore be able to obtain a tax credit equal to 50 per cent of the costs incurred for the listing, up to a maximum amount of Euro 500.000.00.
Alongside this provision of a national nature, there is a further financial measure promoted by the Lombardy region, aimed at encouraging the access of SMEs to multilateral trading systems. This is the so-called 'Quota Lombardia', introduced with Resolution No. 2994 of 9 September 2024, which provides for the allocation of 25 million euro to be distributed over the three-year period 2025-2027. Thanks to this initiative, which can be cumulated with the IPO Bonus, companies in Lombardy can obtain a non-repayable contribution up to a maximum amount of Euro 600,000.00, of which a maximum of Euro 300,000.00 to cover 50% of the admission expenses and a maximum of Euro 300,000.00 to cover extraordinary consultancy expenses incurred in the following 3 years. Access to the Quota Lombardia is reserved to SMEs that i) are duly incorporated, registered and active in the companies' register, ii) have their registered office and operational headquarters in Lombardy at the time of the decision to be admitted to listing and for at least 3 years following the granting of the contribution and iii) have already started or intend to start a process of listing on the Stock Exchange in which at least 50% of the initial public offering (IPO) is for capital increase.
On the business side, already today the SMEs facing the listing process have, therefore, the opportunity to halve the related costs for the next three years, at national level, and to further reduce them, at the level of the Lombardy Region.
On the investment side, nothing is yet certain specifically; however, there are some initiatives that are likely to have an impact on the market in the near future.
This is the case of the Fondo Nazionale Strategico Indiretto (FNSI) project, promoted by Cassa Depositi e Prestiti; it is a so-called 'fund of funds', which aims to provide a 'fund of funds', which will be able to provide the market with the necessary financial resources to finance the investment. "This is a so-called 'fund of funds', which aims to collect substantial resources to be allocated to other investment funds, which will have to allocate 70% of the resources in investments in companies not belonging to the FTSEMIB and 30% in investments without constraints.
To date, the precise regulations of the FSNI are not yet known, and it is impossible to assess what impact the initiative may have on EGMs, especially due to the lack of specific constraints to channel investments to multilateral trading systems. It is worth noting, however, that even the first-issue RIPs did not have such constraints, yet they contributed significantly to the increase in investments made on these markets; it is therefore not unreasonable to expect positive effects, as was the case in 2017.
For these reasons, even though it is too early to draw any conclusions, there is the impression that promising scenarios are emerging for SMEs that aspire to capitalise through the process of listing on EGMs, not only because of the reduction in listing costs, but also because of the foreseeable and desirable increase in investments in companies that will be listed and that are already listed on the market.

*Head of Capital Market Dgpa&Co Spa