Bolsa Mexicana will lower its rates to attract companies

The National Banking and Securities Commission (CNBV) authorized the Mexican Stock Exchange (BMV) to cut its listing and maintenance fees to issuers and, depending on the product, they go from 15 to 50 percent.

The Director of Promotion and Issuers of the BMV, Juan Manuel Olivo, said that this is part of the institution's effort to attract more companies to the securities market, both for capital and debt, so that they can benefit from financing stock market.

"The process we did last year with the regulator was to request discounts on the listing and maintenance fees. The regulator supports us in this feeling ... the CNBV authorizes us (starting in April) for new tariffs with a permanent reduction ... in others, we are very similar to the international trend".

The rates vary according to the product, and even in instruments such as the Development Capital Certificates or the Investment Project Certificates, the discount was higher, but they vary from 15 percent to close to 50 percent.

Despite the efforts of the two stock exchanges that today operate in the country to reduce their quotas and improve the service to companies, the Mexican market has already added 18 consecutive months without public share offers, the biggest drought of offers since the crisis from 2008-2009.

Many companies do not approach the stock market because they consider that only shares are placed or that it must be very large, it is expensive, corporate governance may be excessive or that stock market financing competes with banking when it is a complement.

Why would a company want to go public?

Although there is no minimum amount to reach the stock market, a company that has sales of 200 million pesos is already on track to be a market issuer, even there are already companies with these characteristics on the Mexican Stock Exchange.

"We imagine that they are companies that sell billions of pesos and believe that they are not large enough to go to the Stock Exchange and when we tell them that selling 200 million pesos is already in the stock market, they begin to break those paradigms"

Another relevant issue is the lack of corporate governance in companies, which are mostly family. Corporate governance implies that they become institutional, with a structure and management processes, that there is a Board of Directors, make reports, be audited, among others.

"Generally, the company we visit not only in Mexico City but in other entities of the Republic must improve in matters of corporate governance. When we talk to him, even with other Latin American exchanges, the same thing happens to them."

The manager acknowledged the need to approach the companies and explain the benefits of participating in the stock market. "We have already had many cases of companies that come to the market and when we met with them from the first time we identified that they saw the stock market as something distant."

By Agencies

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