Warsaw Stock Exchange Publishes Composition Of New Segments On NewConnect Market For The First Time
- On 27 June, the WSE has for the first time published the composition of new segments on the NewConnect market: High Liquidity Risk and Super High Liquidity Risk.
- The new segmentation results from the reform announced by the WSE in May 2012 aiming to improve the quality of the alternative stock market of the Warsaw Stock Exchange
On 27 June, the authorities of the WSE have for the first time published the composition of new segments on the NewConnect market. Following a classification process, 108 companies are in the High Liquidity Risk (HLR) segment and shares of 15 issuers are in the Super High Liquidity Risk (SHLR) segment.
Companies whose free-float capitalisation is up to PLN 1 million are in the HLR segment. Companies whose average share price is less than PLN 0.10 or share price volatility is more than 10 percent (quarterly average in either case) are in the SHLR segment. Shares of issuers under bankruptcy are also in the SHLR segment.
Classification of a company in the HLR segment results in its removal from NewConnect market indices as well as a special designation of its shares in information services of the NewConnect market. Classification of a company in the SHLR segment additionally results in the transfer of its shares to the single-price auction system, which means that the share price is determined only twice per day.
Previously, the WSE’s alternative stock market only had one segment: NC Lead, which groups companies aspiring to transfer to the Main Market, based on their capitalisation, shareholder structure, liquidity, share price stability, and compliance with disclosure obligations. The introduction of additional segments on the NewConnect market provides additional information relevant to investors who are familiar with the criteria of classification of HLR and SHLR segments and will make more cautious investment decisions.
“The High Liquidity Risk and Super High Liquidity Risk segments are an element of a bigger reform of the market. The Exchange is implementing the reform as part of efforts to improve the rules of trading since 2007 in order to protect the market’s reputation among investors. The introduction of the new segmentation on NewConnect will also incentivise investors: in order not to be put in a group of companies of a higher liquidity risk, they will be forced to conduct their operations in a more reliable and transparent manner and to improve the quality of relations with their existing and prospective shareholders,” said WSE CEO Ludwik Sobolewski.
The complete list of companies classified in the HLR and SHLR segments is available on the NewConnect market website:
Information about classification of companies in the segments will be published in the NewConnect internet service (www.newconnect.pl) and in official publications of the Exchange. Thanks to special identifiers, investors will be able to track share quotations by segment.