The MAB Situation and a Postpone Annual Reports Issue after the COVID-19

The Spanish Alternative Equity Market (MAB)a market for SMEs which is not indifferent to the economic impact caused by the coronavirus.

The virus had a negative impact reflected on the drop of the International Stock Market last February. However, this negative impact in the MAB was not as great as in other markets. Even though, many companies appeared in red, they were fairly moderate figures. What is more, there were companies that even recorded highs during this period. 

We can highlight four companies from the IBEX MAB 15 that remain strong amid the coronavirus. They are mentioned according to their profit. elZincan industrial zinc production company, which closed at the end of February with a monthly profit of 124,22%, billing €76,4M during the term, a 5% more per year. 

Another company with good results is Facephia global leading company concerning facial recognition technology and mobile biometrics, which was the most revalued in the MAB during 2019. Although its value was also quite positive in the Spanish Stock, as there were 316% increases. In addition, its listing continued to increase during the first two months of 2020, adding in February 35.51%, without forgetting that it also started in the Growth segment of the European Euronext market. The FacePhi’s shares declined up to 28,61% due to the COVID-19 during the first week of March, although the total is positive, 25%. 

Another company having a positive result is VozTelecom, specialist in cloud communications and leader in IP telephony within the SMEs segment in Spain. This company increased its quotation by 8% in February and by 0.46% in the first days of March. 

Finally, we highlight Medcom Tech, a company dedicated to the marketing of technologically advanced products in orthopedic surgerytraumatology, neurosurgery and anesthesia, which has accumulated 2.73% in 2020. 

A company that has not been as lucky as the previous ones is Making Science. Although its results were good in February, in the first week of March it began to have negative results falling by 15%. 

But, although the situation is not the best during March, HomeCapital, the Spanish REIT (SOCIMI) that rents employees’ flats for their business trips, entered the MAB despite the current crisis. This entity has been allowed to quote at a price of €8.36 per share, which means the company’s value ascends to €50.2M Although the company says that it “could represent a material and negative impact on the business situation, the results, the outlook and the financial, economic or property situation”. 

Due to this unusual situation, the board of directors of the Spanish BME have postponed the time that MAB companies have to submit their periodic annual information. This will only apply during this year and has been implemented exceptionally. In addition, the BME requests the information to be provided as soon as possible. What is more, the operator has stressed that it cannot be issued later than six months after the end of the financial year, i.e. until June. 

The responsible for this platform has taken this decision, as it is an emergency measure to better control the social and economic impact caused by the COVID-19, alleviating financial reporting obligations. While complying with the content of theRoyal Decree-Law 8/2020, of 17 March, on extraordinary urgent measures. 

This decision has been made after the Government informed the listed companies operating on regulated markets in the European Union. Even if the MAB companies were not included in this measure, because it is not a regulated market, but a multilateral trading system, the BME wanted to give it the same opportunities as the other companies. 

However, it should be noted that the extension of the MAB does not include equity investment companies (sicavs). A fact that has been highlighted by the General Council of Economists, which calls for decisions approved for listed companies to also be carried out for this form of low-tax collective investment, the instrument preferred by large fortunes to manage their assets. 

Source: El Confidencial

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