Decree reduces capital dispersal to join stock market from 25% to 10%

It’s becoming easier for Portuguese companies to go public. A decree approved by the government, which transposes European legislation, reduces the minimum share dispersion requirement for admission to trading on stock markets from 25% to 10%, according to Jornal de Negócios. A new segment targeting Small and Medium-sized Enterprises (SMEs) is also being created.

An official source from the Ministry of Finance told the news source that the reduction in the minimum requirement for stock market admission incorporates “greater flexibility and proportionality” into the applicable regime, adding that it also aims to “strengthen transparency” and “facilitate financing” for companies.

At the Council of Ministers meeting on June 11, the executive branch confirmed the “approval of a Decree-Law that transposes European standards on financial markets, including the revision of MiFID II, the RMIF, the Listing Act, and the ESAP. The objective is to strengthen transparency, simplify access to information, and facilitate the financing of companies, especially SMEs. The decree amends, among other things, the Securities Code.”

In the field of SMEs, there is also the possibility of registering segments of multilateral trading facilities and the creation of the figure of issuer-sponsored studies.

And the market capitalisation threshold of one billion euros is eliminated. It is easier to go public. A decree approved by the Government, which transposes European legislation, reduces the minimum requirement for the dispersion of shares on the market for admission to trading from 25% to 10%, reports the Jornal de Negócios this Monday. A new segment aimed at Small and Medium Enterprises (SMEs) is also created.

An official source from the Ministry of Finance told the Jornal de Negócios that the reduction in the minimum requirement for admission to the stock exchange incorporates “greater flexibility and proportionality” in the applicable regime, adding that it also aims to “strengthen transparency” and “facilitate financing” for companies.

At the Council of Ministers meeting on June 11, the executive confirmed the “approval of a Decree-Law that transposes European standards on financial markets, including the revision of MiFID II, the RMIF, the Listing Act and the ESAP. The objective is to strengthen transparency, simplify access to information and facilitate the financing of companies, especially SMEs. The decree amends, among other things, the Securities Code.”

In the field of SMEs, there is also the possibility of registering segments of multilateral trading facilities and the creation of the figure of studies sponsored by issuers. And the market capitalization threshold of one billion euros is eliminated.

Source: Negócios