Cost of the day in Europe
(AOF) – Euronext (-0.2% to €70.44), the leading pan-European market infrastructure, remains the leading listing of equities in Europe and debt worldwide, confirming the attractiveness of main market activity in 2022. In 2022, Euronext welcomed 83 new stock listings – half of which were made by Tech companies – representing a total market capitalization of €23 billion and raising €3.8 billion.
In 2022, large capitalization companies again benefited from the wide variety of listing options available on the Euronext markets. This is especially true for Var Energi (774 million euros raised, market capitalization at listing 6.9 billion euros); This oil exploration and production company thus entered the largest global stock market in the last 10 years.
Companies such as Technicolor Creative Studios (market cap of €1.1 billion at listing) and Deezer (market cap of €1 billion at listing) are among the most notable IPOs of 2022.
In addition, Euronext introduced a new listing framework in Italy to facilitate access to financing in its markets for Italian and international companies.
Stefan Boujnah, CEO and Chairman of the Board of Euronext NV, said: “We continue to give companies the tools to grow and achieve their goals by leveraging our European roots and global ambition on their capital markets journey. Euronext continues. Capital Markets by creating a single capital market in the European Union To play a central role in making the Union project a reality.”
AOF – DETAILS
Key points
– The first European financial center established in 2000, operating in 23 states, connecting the regulated markets of Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris, as well as several platforms;
– €1.3 billion in revenue, split between 35% operations, 14% listing, 14% advanced data services and 17% storage and settlement delivery…;
– a growth model based on 5 pillars: strengthening the value chain, expanding the platform offer, expanding the offer in quotations, innovative products and services, strengthening positions in sustainable finance and pursuing external growth;
– Open capital with reference shareholders owning 23.81% of ABN Amro, Caisse des dépôts, Cassa Depositi e Prestiti, Euroclear, Federale participatie and Intesa San Paolo shares;
– a company incorporated under the laws of the Netherlands, Stefan Boujnah is the chairman of the Board of Directors consisting of 9 people and the chief executive officer;
– Maintaining financial stability after the purchase of Borsa Italia, the leverage effect was reduced to 2.6, hence the increase in the debt forecast in the spring.
Challenges
– “Growth for Impact 2024” strategy: 3-4% annual growth in turnover and 5-6% in operating income / maintenance of dividend policy (50% rate) and investments (3-5% of turnover) / synergy with the Milan Stock Exchange 160 100 euros for estimated integration costs of a million euros;
– 4 priorities for the innovation strategy – digitization, information exchange and application of co-design, strengthening the efficiency of central technologies and tokenization, specially developed business models, etc. integration of innovations such as;
– 2-pillar environmental strategy, internally reducing the carbon footprint and expanding the service offer for clients, accelerating the transition to sustainable finance: expanding the offer of ESG indices created in cooperation with rating agencies or on order, strengthening Europe’s leading position in the offer of specific clients / ESG investment tools – ETFs, mutual funds, “green” bonds, derivatives, etc. and offering products and standards for commodity contracts in 2022 / supporting issuers in the ESG transition;
– Maintaining competitive advantages – a single platform for transactions in European regulated markets and a range of services covering all the needs of financial market participants;
– High innovation capacity, higher operating margin and integration speed than European competitors.
Challenges
– Weight and volatility of European regulation;
– Enhancing attractiveness through ESG indices, listing innovative companies and offering pre- and post-listing services after a record 212 IPOs in 2021;
– Completion of 3 major operational projects: migration of data centers in Bergamo and cash and derivatives to Optiq trading platform and European expansion of clearing activities;
– 2022 target increased to a record level after the first quarter: reduction of operating costs to 612 million euros;
– Dividend of €1.93 for 2021, i.e. 50% payout rate.
Negative effects of rising interest rates
An increase in interest rates usually leads to an increase in bank income due to loans. According to S&P’s survey of 85 banking institutions in Europe, the sector expects an average increase in net interest income of 18%. However, this new inflationary context also has undesirable effects, notably increased refinancing costs. It also comes with renewed fears of recession, which will then affect all of the bank’s businesses, from loans to asset management, whose earnings are linked to market prices. Confirming element: Eurozone banks are resilient enough to face a deteriorating environment.
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