Deutsche Börse’s new segment for small and medium-sized enterprises (SMEs) will be named Scale. This is the result of a naming competition that Deutsche Börse CEO Carsten Kengeter had opened up to the public in November 2016. Over 550 suggestions were submitted. Scale will be launched on 1 March and will replace the Entry Standard for equities and corporate bonds.
The name Scale clearly defines our objective of expanding the existing ecosystem for corporate financing. Our new segment will primarily benefit small and medium-sized companies, as they have a particular need for a better equity base,” Kengeter said. “I am pleased that so many people responded to our competition, and am especially looking forward to attending the Eintracht Frankfurt match with the winner.
With Scale, Deutsche Börse intends to improve access to investors and growth capital for SMEs. It is aimed at companies with tried and tested business models that have also already been successful with investors.
Admission requirements for the segment include meeting minimum standards in terms of key figures and providing evidence of cooperation with a Deutsche Börse capital market partner that checks the company’s suitability for the segment and also monitors companies after their IPO. There will also be mandatory research reports, commissioned and paid for by Deutsche Börse and prepared by Edison Investment Research and Morningstar.
Deutsche Börse’s aim is to establish a functioning ecosystem for growth in Germany and Europe that supports companies through all growth stages up to listing, thereby bringing about more IPOs.