This report presents a global analysis of equity markets for growth companies, examining their structure, regulatory frameworks and key trends. While the definitions of “growth markets” and “growth companies” may vary across countries and regions, this report focuses on equity markets that cater to SMEs and growth-stage companies, which typically have more flexible entry requirements than main markets. Growth companies are defined as those listed on these dedicated markets.
Growth companies have typically moved beyond the start-up stage and are seeking to expand their operations by raising capital in public markets. They play a vital role in fostering innovation, creating jobs and driving economic growth. However, they often face challenges in accessing long-term financing, as they may lack the collateral, cash flow stability or track record required for traditional bank lending. To support the financing needs of such companies, many jurisdictions have developed dedicated equity markets with more flexible listing requirements and regulatory frameworks than main markets.
The report explores the trends of IPO activity, listing costs, regulatory and corporate governance frameworks, investor composition and secondary market liquidity. In addition, it examines the role of market-making mechanisms and the availability of research coverage for listed growth companies. The findings draw on a novel OECD dataset covering 59 jurisdictions built for this report, which maps equity growth markets by identifying relevant stock exchanges and market segments. The findings also build on responses provided by regulators from 30 jurisdictions to the “OECD Survey on Equity Markets for Growth Companies”, a comprehensive survey conducted for this report. The survey provides detailed insights into the current functioning of public equity markets for growth companies, including the legal and regulatory frameworks that govern them.
The report is part of the OECD Capital Market Series, which supports policy discussions on how capital markets can better channel household savings into productive investment in the real economy. The report is produced under a Japanese government-financed programme aimed at supporting the development of capital markets across Asia.
This report has been developed by the Capital Markets and Financial Institutions Division of the OECD Directorate for Financial and Enterprise Affairs. It was prepared by Kyo Maruyama and Yun Tang, with the support of Blanca Gené Orriols, Gülgün Arikan and Tugba Mulazimoglu, under the supervision of Alejandra Medina, Head of the Financial Economics Unit, and Serdar Çelik, Head of Division. Iris Tensen provided communications support. Participants to the 2024 OECD-Asia Roundtable on Corporate Governance and delegates to the OECD Corporate Governance Committee provided valuable insights.