Recital 33

(33) One of the key objectives of the CMU is to facilitate the access of SMEs to public markets in the Union and to provide those SMEs with sources of funding other than bank lending and the opportunity to scale up and grow. The cost of producing a prospectus might be a deterrent for SMEs willing to offer securities to the public, considering the typically small size of the consideration of those offers. The EU Growth prospectus is a lighter prospectus, introduced by Regulation (EU) 2017/1129, and is available for SMEs and a few other categories of beneficiaries, including companies with a market capitalisation of up to EUR 500 million whose securities are already admitted to trading on an SME growth market. The EU Growth prospectus aimed to reduce the costs of preparing a prospectus for smaller issuers, while providing investors with material information to assess the offer and take an informed investment decision. While issuers who draw up an EU Growth prospectus can achieve quite substantial costs savings, the level of disclosure of an EU Growth prospectus is still considered too prescriptive and too close to that of a standard prospectus to make a significant difference for SMEs. There is therefore a need for an EU Growth issuance prospectus that has lighter requirements to make the listing documentation for SMEs even less complex and burdensome and to enable SMEs to achieve even more important savings. In order to limit burdens for issuers and to protect investors, it is, however, necessary to provide for a transitional period for EU Growth prospectuses approved before the date of application of the new regime.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-17 · Text as adopted (Official Journal); later amendments are not incorporated in this text.