NPEX: the stock exchange for SMEs

What is NPEX?

NPEX stands for Nederlandsche Participatie Exchange. It is a stock exchange for SME companies looking for capital from half a million to €10 million. Through NPEX, you can raise money directly from investors. You do this by issuing shares or bonds of your company. Investors buy these shares or bonds, also called securities. On the NPEX stock exchange, investors can trade these securities. Supply and demand cause the value of the securities to rise or fall. This creates share prices. NPEX keeps track of these share prices.

 

Who might use NPEX?

To find investors through NPEX, there are some conditions:

• Your company has to be in business for at least 3 years.
• Your company must have made a profit in at least one of the previous 3 years. 
• You must have growth plans for your company.
• The investment you are looking for is over half a million euros.

Once you have secured financing via NPEX, you have to publish financial statements every year, as well as half-yearly accounts.

When do I use NPEX financing?

Issuing securities is especially suitable for big expenses. For example, if you buy new premises or expensive equipment. Usually, your company has been around for some time and is in a growth phase.

By issuing bonds, you borrow money for a certain period. In return, you pay interest to your investors. You set the interest rate when you issue the bonds. You can also issue shares through NPEX. An investor then becomes co-owner of your company and shares in paid dividends.

Costs of NPEX

Before you can raise money through NPEX, there are mandatory documents you need to prepare. You will need advisers for this. To gain access to the exchange, you pay start-up costs. To be listed on the exchange, you pay listing fees and annual management fees. On bonds issued, you pay interest to the bondholder. On issued shares, the shareholder shares in paid dividends. This makes NPEX particularly interesting for financing starting from half a million euros.

Term and convertibility

The term of bond loans via NPEX is between 4 and 7 years. Bonds can be convertible. This means that the holder of a bond can convert them into shares during the term. This is done at a predetermined price. Shares have no set term. Issued shares can be bought back through the stock exchange, at the price at the time.

Applying for financing through NPEX

At NPEX, you can raise €500,000 or more in financing as a growing business by issuing bonds or shares. Does that suit your situation? Then follow these steps:

• Introduction and screening: Start with an online application. This is followed by an introductory meeting with NPEX. They will perform an initial check, assessing your business plan, financial figures, and growth opportunities.
• Limited Sanity Check: An external party assesses your business for risks and opportunities.
• Prospectus and listing agreement: Together with advisers, you prepare a prospectus. This is a legal document for investors. It contains information about the type of investment, the risks, the financial situation of your business, and the purpose of the financing. You also come to a agreement for your listing on the stock exchange. You sign this if you agree.
• Issue and trading: After approval, the issue starts. This means the issue of securities begins and investors can invest in your business through the NPEX exchange.

Help with business financing

KVK’s Financing Guide helps you find your way in financing your business. Do you still have questions? Call the helpline on 088 585 11 11 or ask an expert.

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