NPEX: the stock exchange for SMEs

  • KVK Editors
  • The basis
  • 11 November 2024
  • Edited 15 November 2024
  • 1 min
  • Managing and growing
  • Finance

NPEX stands for Nederlandsche Participatie Exchange. It is a stock exchange for entrepreneurs from small and medium-sized enterprises. Through the online investment platform, investors can invest directly in your company. Going public is also a form of financing for your company.

NPEX is for 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. They are also called securities. On the NPEX stock exchange, investors can trade these securities. Supply and demand can cause the value of the securities to rise or fall. This creates share prices. NPEX keeps track of these share prices.

 

What do these terms mean?

Shares are units of ownership in a company. They are worth money. As a company, you can sell these pieces, giving you money to invest, for example. A bond is a debt instrument. When you buy a bond, you lend money to a company. In return, you get interest every year. Securities is the collective name for financial products traded on a stock exchange. Such as shares and bonds. Investors are individuals or organisations that buy securities on the stock exchange.

What can you use it for?

Securities spending 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.

Conditions

To find investors through NPEX, your company must exist for at least 3 years. In the previous 3 years, your company must have made a profit for at least one year. You must publish annual and semi-annual financial statements every year after financing.

Costs

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.

Maturities

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 maturity. Issued shares can be bought back through the stock exchange, at the price at the time.

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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