Opening bell: Riba Mundo Tecnologia’s groundbreaking IPO as the first Spanish company on Euronext Growth in Milan

CEO Marco Dezi talks about IR, the intricacies of navigating a complex IPO process and why a FX exchange was the best choice for the company

Why was Euronext Growth Milan the best exchange to list Riba Mundo Tecnologia? Everything is due to the analyzes and feedback carried out by the company’s advisors on both the Spanish and Italian capital markets, says Marco Dezi, CEO and main shareholder of the technology company.

The company, which is also a B2B electronics retailer, was publicly listed on Euronext Growth in Milan in July 2023, becoming the first Spanish company to be listed on the Italian Stock Exchange.

As part of his role in the company, Dezi Riba represents Mundo Tecnologia to institutions, stakeholders and clients, although the company has an in-house IR team and also outsources some IR functions to an external consulting firm.

Explaining the reasons behind the company’s decision to go public in Italy, Dezi says that in addition to the expert market feedback the company received, another reason for choosing Milan was that the company has “a fully Italian management team”. [in] Italy and [the country was] the first [one] regarding billing in 2022, [representing] 20 percent of our total sales.

Marco Dezi, Riba Mundo Tecnologia

“I knew other companies that had a positive experience after an IPO on Euronext Growth in Milan and achieved a positive valuation result.” Their experiences were an inspiration for Riba Mundo Tecnologia and we believe this is the right market to do that To strengthen companies and the sector in which we operate.”

Break barriers

For Riba Mundo, going public meant entering uncharted waters, especially given its unique position as the first Spanish company to be listed on Euronext Growth in Milan. The journey lasted more than a year and presented multiple challenges, including differences in regulations between the two jurisdictions, language differences and the need to coordinate the work of numerous teams involved in the process.

“Our IPO journey was perhaps more complicated and longer than normal,” recalls Dezi, adding that it was also his first experience working on an IPO.

However, he adds that the process was a worthwhile one: “It is an experience that I can recommend to any entrepreneur who has the opportunity to take this path, as it is professionally educational, helps you to have a symbiosis with the company “that represents you and guides you to thoroughly understand every aspect of the business.”

Dezi outlines three crucial phases in the IPO process. The first, perhaps most effortless, phase focused on understanding the path ahead, he explains.

“It was about understanding the path to take, the due diligence required and the teams that would be part of the project,” he says. “At this stage, the enthusiasm for what we wanted to achieve prevailed and it did not require a lot of management effort.”

The real work began in the second phase. “It was a very intensive phase because the normal operation of the company had to be ensured in the meantime,” explains Dezi.

“Especially in a company like ours that is in full growth, this was perhaps an even greater difficulty.”

At this point and before entering the final phase, the company had to redesign some of its processes as management team members had to prioritize IPO due diligence over other tasks.

“It was a phase that required a lot of commitment from several key company stakeholders and required careful management of all company forces to prevent the works from happening.” [hurting] “The company’s numbers and, above all, its growth,” remembers Dezi.

The time to shine

The final phase was when the company launched roadshows, a time that Dezi remembers as “the most challenging moment” for him and CFO Jose Piñera Lopez. On reflection, Dezi says the meeting with investors was a crucial moment to convey the company’s story, detail its long-term goals and explain where the company is headed.

“The commitment in this final stage is directly proportional to the satisfaction you get when these investors understand the potential and prospects of your company and decide to believe in you and invest in your company,” he says.

But why was July 2023 the right time for the IPO? According to Dezi, this was a necessary proof of the company’s growth and the starting point for partners and investors to recognize its value. Riba Mundo Tecnologia had recorded a 50 percent increase in sales in the first two quarters of 2023 compared to the previous year, and the company’s number of employees also grew rapidly. However, the biggest hurdle was ensuring that the company’s story was properly perceived by its potential investors.

“The biggest challenge was to tell the story of how a B2B trading company gained traction and transformed the market with its technology-based approach and a vision of internationalization without commercial constraints,” explains Dezi. “It was also a big challenge to present ourselves as a non-Italian company and as the first Spanish company ever.” [on Euronext Growth Milan].’

Save your numbers

So what advice does Dezi have for those starting their first IPO journey?

“Pursue the due diligence during the IPO with utmost commitment because it helps you get to know the company in detail,” he says. He also urges IR professionals or executives like him who have to manage relationships with potential investors to always talk about the company with the right enthusiasm while remaining balanced.

“Everything you say needs to be backed up by numbers and goals achieved,” he advises.