Listing on MTA

Patrizia Celia, Head of Large Caps, Investment Vehicles & Market Intelligence, Italy Primary Markets

What are the main characteristics of the Mercato Telematico Azionario (MTA)?

The MTA is the regulated market of Borsa Italiana dedicated to the listing of medium and large companies. The requirements for admission and continued inclusion are in line with international best practices, enabling large and medium Italian business groups to access the most important international liquidity pools.
The MTA stands out at the international level for its liquidity, with the highest listed share turnover rate and geographical diversification of institutional investors and the associated intermediaries, as well as for the important contribution made by retail investors. The integration of its trading and post-trading systems makes the process of executing orders particularly efficient, which translates into a clear preference among intermediaries for trading instruments on the Italian markets, even for securities listed on multiple exchanges. Inclusion in the FTSE MIB index provides optimal international exposure for the 40 top companies in terms of capitalisation, liquidity and free float. The FTSE Italia Mid Caps index represents the next 60 shares following the top 40 and provides visibility among international mid-cap stocks.

What are the main characteristics of companies that might be interested in being listed on the MTA?

Admission to listing is granted by Borsa Italiana on the basis of formal requirements, such as a minimum capitalisation of 40 million euro and a free float of at least 25%, and substantive requirements such as a clear strategic vision, sound competitive positioning, the financial sustainability of the business and management autonomy. Adherence to the principles of the Corporate Governance Code is also recommended. Companies may thus be very heterogeneous by both size and business sector. For example, already listed companies range from those with a minimum capitalisation of 40 million euro upon admission to companies with a market capitalisation of over 80 billion euro, showing how the market is effectively able to meet the need for listing of small and medium enterprises as well as the need for international visibility of major players with global leadership. In terms of sectors, the MTA is able to accommodate both companies operating in sectors where the Italian entrepreneurial tradition is strongest and companies with a strong focus on technology and innovation, service companies and public utilities. The market is therefore able to bring value to all business success stories, and even at times of economic difficulty the MTA has succeeded in admitting companies with sound competitive positioning and strategic visions.

What are the characteristics of investors who invest in securities listed on the MTA?

Both Italian and international retail and professional investors have access to the MTA. The base of investors who invest regularly in securities listed on the MTA is very broad and diversified: it includes over 8,800 funds of nearly 2,000 investment firms that look to our market from all continents and over 50 countries, from the United States, in first place, to the UK and France, all the way to Australia and New Zealand, in addition to the United Arab Emirates, South America and South Africa. The most important global investors are present alongside small niche investors, large asset managers alongside direct asset owners, pension funds and sovereign funds. The investment strategies also vary widely, from those who invest passively, seeking exposure to the Italian economy by investing in the main securities included in the FTSE MIB, to those who implement stock-picking strategies in search of significant growth potential or dividend streams. All investors now show a certain degree of sensitivity to sustainability issues, from those who invest exclusively according to sustainability or impact investing principles to those who also integrate considerations relating to a focus on sustainable growth of companies into their investment decisions. The most important pools of Italian and international investors can therefore be accessed from Milan, without neglecting the significant contribution made by retail investors.