Hessen’s Minister of Economic Affairs Tarek Al-Wazir expects the launch of the Scale segment on the Frankfurt stock market to create additional financing opportunities for small and medium-sized companies. Al-Wazir stated, “I am confident that Scale will serve to improve access to capital markets for small and medium sized companies. Maintaining a listing on Scale requires issuers to ensure the necessary degree of transparency for investors. The provision of improved financing opportunities especially for small and medium sized companies is an important issue to the state government of Hessen.”
Scale’s target group includes companies with tried and tested business models that have proven their worth in the eyes of investors. In order to be included in the new segment, companies must meet minimum criteria with regard to defined company key figures and demonstrate cooperation with one of the current 34 Deutsche Börse Capital Market Partners, which will be responsible for verifying the company’s suitability for the segment and providing support to the company following the initial public offering. The research reports created by Edison Investment Research and Morningstar commissioned and paid for by Deutsche Börse also constitute mandatory inclusion criteria. Hence, Scale serves to replace the entry standard for stocks and corporate bonds.
Deutsche Börse strives to establish a functioning ecosystem promoting growth in Germany and Europe that supports companies in each and every growth phase up to and including the stock market listing and in doing so gives rise to more initial public offerings. The launch of this new stock market segment is the result of two roundtable discussions involving the German Federal Ministry of Economics (Bundeswirtschaftsministerium), Deutsche Börse, and high ranking representatives from the government, finance, and startup sectors.