BRUSSELS (CBS.MW) -- Meta4 NV, a software company, became the first Spanish firm to list on the Brussels-based Easdaq stock exchange Friday.
Meta's launch was a boost for the self-styled pan-European market for high growth companies which has slipped into the shadow of Germany's Neuer Markt recently.
Meta, which is Spanish but registered in the Netherlands, supplies software products which specialize in management techniques. The company raised 47 million euros ($48.12 million) net through a placing of 3,600,000 shares valued at 14 euros each.
This gave Meta a market capitalization of 309 million euros ($316.4 million) with roughly 18 percent of its capital floated. Meta shares ended their first day at 15.25 euros each.
Founded in Madrid in 1991, Meta has almost 800 employees. Among its clients are Telefonica SA REP, -0.56% the giant Spanish telecommunications group, oil giant Endesa SA ELE, -1.25% the French insurer AXA UAP AXA, -1.13% and American Express Co. AXP, -1.49% Its product range includes a human resource management system and a people and knowledge management system.
"With the capital provided by this IPO, Meta4 is well positioned to continue its rapid growth, offering advanced software solutions and technologies in an increasing number of major markets," Juan Moran, CEO and co-founder, said in a statement.
Analysts said Meta4 has good potential but competes in a tough sector. "It's operating in what could be a fast growing area of knowledge enabled human resource management software," said Derek Brown, technology analyst at Deutsche Bank in London.
Observers say Meta has a strong position in the Spanish market so it's best opportunities for growth are elsewhere in Europe and in the U.S. The Dutch software giant, Baan NV baanf holds a 13.8 percent stake in Meta4 making it the second biggest shareholder after General Atlantic Partners LLC which has 26.2 percent.
Deutsche's Brown said that although the Spanish software company has good potential, it operates in a tough sector which includes the likes of PeopleSoft Inc. PSFT, -30.00% Oracle Corp. ORCL, -1.42% and SAP AG SAP, -1.52%
The arrival of Meta4 brings the Easdaq's total number of companies listed to 46 from eight European countries and the U.S.
The Easdaq which was launched on November 27 1996, has been somewhat overshadowed by the Frankfurt-based Neuer Markt. The Easdaq's German counterpart has attracted 60 IPO's so far this year taking its total number of companies to 124.
The Neuer Markt also has more liquidity with an average of 145 million euros ($179.8 million) traded per day compared to the Easdaq's 17 million euros ($17.4 million). Analysts say this is a problem for the Easdaq.
"Low liquidity is certainly an issue for investors. It [the Easdaq] hasn't had the same success in attracting companies to list as the Neuer Markt has," said Deutsche's Brown.
The Neuer Markt has a market capitalization of about 37 billion euros ($37.8 billion) compared to the Easdaq's 17 billion euros ($17.4 billion). Some observers say the German bourse now has the potential to become the Nasdaq of Europe. See related story.
But the Easdaq has grown by about 34.4 percent so far this year while the Neuer shed about 25 percent of its value in 1999 before starting to turn around recently. The Brussels-based bourse also recently announced plans to create a dual trading facility for shares in companies already listed in Europe, Israel and the U.S. See story.
The Easdaq's biggest companies by market capitalization are both U.S. firms -- Global Telesystems Group Inc. gtsg and NTL Inc. ntli Both are also listed on the Nasdaq. The third largest is the Belgium technology group Melexis NV with a market cap. of roughly 1.767 billion euros ($1.8 billion).
But Val Tate, head of investor relations at Antisoma PLC, a British biopharmaceutical company, said the Easdaq is an attractive stage for small cap. European firms. She said Antisoma chose to list on the Easdaq last December because it offers a wider pool of investors than either London's Alternative Investment Market (AIM) or the Neuer Markt.
"Our primary [IPO] target was the Easdaq because we were looking to expand our shareholder base and the Easdaq gave us access to European investors," Tate said.
She said the Neuer is still largely a local -- German -- market if you look at the companies listed there which, with 13 exceptions, are German. Tate adds that AIM, unlike the Easdaq, doesn't focus on high-tech growth companies.