(News Bulletin 247) – The pan-European stock exchange operator unveiled on Tuesday the new composition of “Tech Leaders”, its market segment dedicated to high-growth listed technology companies. Euronext is also observing a resumption of IPOs in this universe of values.

Pan-European stock exchange operator Euronext announced on Tuesday that 116 companies are now part of its market segment dedicated to the technology sector “Tech Leaders”, and sees encouraging signals for new arrivals on the stock market.

Launched in 2022, Tech Leaders aims to increase the visibility of high-growth European technology companies among international investors and to ensure better access to these assets for retail investors.

Eleven new entrants

At the end of the annual review of the index, sometimes compared to the American Nasdaq, eleven new companies will be included in Tech Leaders on June 24, including the French biotech Medincell. The index represents a total market capitalization of more than 900 billion euros. A very small weight compared to the more than 3,000 billion dollars that Microsoft or Nvidia weigh separately.

Arriving on the Paris Stock Exchange on Friday, the specialist in light intensification technologies Exosens was immediately included in the index. Just like the French software publisher Planisware, listed since April, and Pluxee, the employee benefits branch of the Sodexo group, listed since February.

The Tech Leaders index, made up of “the best established companies in the technology and growth sectors” according to the head of Euronext stock quotations Aurélien Narminio, also includes heavyweights such as the European equipment manufacturer for the semi-finished industry. -ASML drivers, second largest European market capitalization.

The electronic chip manufacturer STMicroelectronics, the IT group Capgemini, the meal delivery group Just Eat and the payments specialist Adyen are also part of this index.

A favorable window for IPOs

After two slow years, IPOs seem to pick up again in 2024.

“Since the start of the year we have seen that the window is reopening” regarding IPOs with “the prospect of falling interest rates”, which is particularly favorable to “growth companies which need capital to develop”, observes Mathieu Caron, head of primary markets at Euronext, to AFP.

Aurélien Narminio adds that “40% of IPOs at the start of the year were technology companies”. “Technology companies are more sensitive to rising interest rates and their valuation rises with falling rates,” he explains.

(With AFP)