Opinion: Madara Cosmetics proves that the exchange is perfect for smaller companies too
There are many businesses that express interest for their shares to be quoted at the exchange, said Nasdaq Riga chairperson Daiga Auziņa-Melalksne in an interview to Latvijas Radio, commenting on the addition of Madara Cosmetics shares to the First North alternative market. She predicts that Madara Cosmetics, whose shares were added to First North alternative market on Friday, will definitely see demand. «There are businesses that are very active and are already hard at work realizing their goals. This is why addition of new companies is very likely,» comments Auziņa-Melalksne.
She also notes – while until now it was believed that the exchange is meant for large corporations, Madara Cosmetics proved that it is perfect for smaller companies as well, and there are many small companies in Baltic States.
«I have a very positive outlook for the future development of the exchange in the Latvia, Lithuania and Estonia, because I see that new companies that were built up from zero in the past 10-20 years continue emerging,» says Auziņa-Melalksne.
Shares of Madara Cosmetics were included in Nasdaq Riga’s alternative market First North. So far, 3,214,800 Madara Cosmetics shares with nominal value of EUR 0.1 have been released on to the alternative market. First North is an alternative market managed by Nasdaq Group exchange. The alternative market does not have EU-regulated securities market status. Companies included in First North comply with specific requirements. However, specific regulated market requirements do not apply to them. Requirements of First North are more lenient than the Baltic regulated securities market. Because of that the degree of investment risk is also higher.