The professional compartment was created in 2007. It is dedicated to admissions on Euronext Paris without prior initial public offering or sale of shares i.e. dedicated to admission through a direct listing or following a private placements towards qualified investors. Legislative and regulatory provisions resulting from European directives and which applies to securities admitted on a regulated market also apply on securities admitted on the Professional compartment.
Admission on professional segment enables simplification of the operation realization through
(i) waiver on a letter from the Auditors stating that they have completed their assignment,
(ii) waiver to provide certificate by the investment service provider and
(iii) waiver to translate the Prospectus summary in a language customary in the sphere of finance.
Admission on the professional compartment also enables reduction of permanent and periodic information reporting obligations including possibility to (i) publish all regulated information in language customary in the sphere of finance, (ii) waiver to publish auditors fees and (iii) waiver to establish pro forma accounts in the context of periodic information.
Professional compartment is open to French and foreign companies and welcomes shares and different types of securities. It allows international issuers to dual-list outside public offer domestic regime. Besides, issuer can decide to include a private placement as part of its secondary listing. By definition, obligation to offer at least 10% of securities to public or to establish a price range do not apply on this segment.
On the secondary market, retail can access to the securities only on its own initiatives and after having been informed of the characteristics of this compartment by its investment service provider. Any marketing toward retail is forbidden.
Please also refer to the GENERAL REGULATION OF THE AUTORITÉ DES MARCHÉS FINANCIERS for details, especially – Section 5 of Chapter VI to BOOK V – MARKET INFRASTRUCTURES.
SECTION 5 - PROVISIONS APPLICABLE TO CERTAIN COMPARTMENTS
Article 516-18 The market undertaking may open a compartment for issuers applying to admit their financial instruments to trading on a regulated market without a public issue or sale if the equity securities or the securities that give or may give access directly or indirectly to the issuer's capital or voting rights are not already admitted to trading on a French regulated market. Issuers may not ask for their financial instruments to be transferred off the compartment referred to in the first paragraph except in the case of a public issue or sale of financial instruments that entails the preparation of a prospectus.
Article 516-19 Financial instruments admitted to trading on the compartment referred to in Article 516-18 may not be acquired by an investor other than a qualified investor, within the meaning of 2 of II of Article L. 411-2 of the Monetary and Financial Code, unless such investor takes the initiative to do so and has been duly informed by the investment services provider about the characteristics of the compartment.
The products traded in Professional Segment may involves higher risk than ordinary products traded in other Euronext markets, segments or compartments. It is for professional and sophisticated investors with a high risk-tolerance for trading companies with limited information available and limited regulatory oversight. Investors should exercise due care and conduct thorough research before making any investment decision. Investors should also seek independent investment or legal advice if there’s doubt in the market or investment.