French Financial Markets Authority announces measures to modernise IPO practices with more flexible prospectus, pricing disclosure and language options

The French Financial Markets Authority has published a set of measures to facilitate access to stock market listing for companies seeking to raise capital, updating its IPO doctrine and market practices within the European Prospectus Regulation framework. The changes follow earlier steps to simplify listings, including making the retail tranche optional for IPOs on Euronext Paris’ regulated market, and draw on work by the IPO Forum convened under Paris Europlace. The package confirms that any prospectus format permitted under EU rules is acceptable, while highlighting the advantages of a tripartite prospectus made up of a registration document, a securities note and a summary. It also broadens pre-IPO communication options by letting issuers freely set the period during which an approved registration document is made available and by allowing an early announcement press release even where the issuer opts for a single-document prospectus approved later in the process. For single-document prospectuses, issuers can request confirmation from AMF staff that the review has concluded, subject to no new developments, for sections corresponding to the registration document, including at a later stage for transactions approved when final offer terms are set. The AMF further relaxes its approach to price disclosure by allowing companies to choose between publishing an indicative price range or, at minimum, the maximum price when available, gives issuers greater choice over the prospectus language (with a French summary available for retail investors), and makes optional the organisation of a market kick-off meeting, including under the auspices of the French Society of Financial Analysts.