News
December 2008 on the WSE
The two markets operated by the Warsaw Stock Exchange had 12 new listings in December 2008, including 5 on the Main List and 7 on NewConnect. In all of 2008, the WSE markets reported 94 new listings, including 33 on the WSE Main List and 61 on the alternative market. Despite the financial market crisis, the number of IPOs on the WSE was down by only 11 compared to 2007. As a result, the WSE ranked first in Europe by the number of IPOs in the year by the end of November 2008 (according to FESE – the Federation of European Securities Exchanges). The markets operated by the WSE accounted for one third of all European IPOs in January-November 2008. The WSE was ahead of all exchanges in the region as well as other markets including London, Euronext and OMX.
The highlight of December was the listing of MW Trade, the first stock to move from NewConnect to the WSE Main List.
New Listings
The company ATREM was listed on the WSE Main List on 18 December. The company develops and implements innovative technological solutions for industrial process automation, ITT systems, dedicated data acquisition systems and equipment, facilities management systems.
The company M.W. TRADE was the first NewConnect listed stock to be listed on the WSE regulated market on 19 December. M.W. Trade was first listed on NewConnect in September 2007 when it raised PLN 16.3 million in a private placement of shares. The company’s core services include:
1. Financing and restructuring debt of public healthcare institutions;
2. Debt enforcement on own account and for clients;
3. Sale of enforcement services.
The company IZNS IŁAWA was listed on 22 December. The company’s core business includes:
- manufacturing and sale of car parts and accessories;
- comprehensive repair of truck, bus and heavy machine engines;
- production of registration plates;
- manufacturing and on-line sale of car tuning and styling parts.
The company MIRBUR was listed on 29 December. The company is a general contractor of commercial, residential and industrial property as well as civil engineering projects on the Polish construction market. The company focuses on projects in the region between Warsaw and Łódź.
The company ANTI was listed on 30 December. ANTI provides minor architecture services including construction, maintenance of green areas, facilities management, and cleaning services. The company’s main departments include: Construction, Green Areas, Cleaning Services, Facilities Management.
Other Events
On 2 December 2008, the WSE and CNBC Europe signed an agreement whereby CNBC will be the first television station to publish selected real-time exchange information (to the extent agreed with the WSE) in its freely accessible television information programmes. Television stations typically publish such information in the form of tickers. The scope, the mode, and the trade terms of such presentation of exchange data are governed by special agreements between stock exchanges and media companies.
On 4 December, the WSE head office hosted a conference organised by the Warsaw Stock Exchange and the Polish Association of Accountants entitled “XBRL Application on the Capital Market: Opportunities for the Market, Financiers, and Accountants.” XBRL stands for eXtensible Business Reporting Language – standardised technology solutions to automate generation, transmission and processing of business information. The application of a single financial reporting standard will benefit all participants of the financial market. The conference presented the recent experience of the global capital markets in storing and processing electronic financial information. Representatives of the US, Japanese and Spanish Securities and Exchange Commissions shared their experience as a starting point for discussion on opportunities for the Polish capital market. Representatives of the Polish Ministry of Finance and the Association of Accountants presented recent amendments of Polish accounting legislation and issues of professional code of practice and certification of the accounting profession.
The conference brought together 160 participants: representatives of capital market institutions, managers, accountants, IT officers.
On 6 December, the WSE head office hosted a new edition of the educational event “All That Exchange.” The initiative strives to reach out to the broadest possible audience including actual and prospective investors and everyone interested in the stock exchange. Almost 1,000 people visited the WSE head office, including investors, capital market participants, and many young people interested to embark on an adventure on the stock market. The programme featured presentations by well-known capital market and stock exchange experts. Other attractions included the screening of films about the stock market, guided tours of the WSE head office, and many competitions and surprises. The highlight of the event was a lottery. Investors who subscribed for shares offered in the ENEA IPO could win a prize: 5 Apple MacBooks and cash awards at PLN 400. The winning lots were drawn by the event’s special guests: Mr Michał Chyczewski, Deputy Minister of the State Treasury, and Mr Andrzej Kluczny, Vice-Chairperson of the Polish Financial Supervision Authority.
A gala ceremony summarising the year 2008 on the Warsaw Stock Exchange was held at the Capitol Theatre on 17 December. During the gala, the WSE presented awards for 2008:
1) Biggest number of floatations on the WSE Main List in 2008 – ex aequo:
- UniCredit CAIB Poland SA,
- Dom Maklerski AmerBrokers SA,
2) Most active Authorised Adviser, considering the number of floatations on NewConnect in 2008:
- Inwest Consulting SA,
3) Highest cumulative IPO value in 2008:
- UniCredit CAIB Poland SA,
4) Highest value of secondary public offerings in 2008:
- UniCredit CAIB Poland SA,
5) Issuers who chose the Polish capital market to raise growth equity in 2008:
- Atlas Estates Limited,
- New World Resources N.V.,
- PHOTON ENERGY a.s.,
6) Issuers who chose NewConnect to support innovative growth – ex aequo:
- ATON HT SA,
- Euroimplant SA,
- PHARMENA S.A.
7) For assisting the floatation of the first foreign company on NewConnect:
- CMS Corporate Management Services Sp.zo.o.,
8) For going public on the WSE to improve the transparency of Polish football:
- Ruch Chorzów SA, award presented to Katarzyna Sobstyl, CEO
9) For promoting the Polish stock market on foreign markets:
- Adina Ardeleanu of the Romanian daily Bursa;
- Olena Gubar of the Ukrainian Kommersant.
10) Association of Exchange Issuers – for co-operation with the WSE in 2008.
The WSE implemented the periodic revision of indices after trading on 19 December.
The WIG20 index portfolio did not change. In the mWIG40 index portfolio the companies IDMSA, MCI, PGF and SANWIL were replaced by the companies COMARCH, HBPOLSKA, MOSTALWAR and SWIECIE. In the sWIG80 index portfolio the companies BBICAPNFI, COMARCH, IBSYSTEM, KOLASTYNA, HBPOLSKA, MASTERS, MOSTALWAR and SWIECIE were replaced by the companies 06MAGNA, ACTION, ALCHEMIA, ASSECOBS, AZOTYTARNOW, IDMSA, MCI and PGF.
The WIG index portfolio includes all stocks on the Main List excluding companies in a specific market situation (e.g., bankruptcy, insolvency, qualification in MINUS5 and ALERT LIST segments or the Lower Liquidity Space). The WIG index portfolio is comprised of 326 companies after the revision.
Silicon Hill Ventures LLC, USA, became a new WSE IPO Partner in December. Silicon Hill Ventures LLC will co-operate with the WSE in attracting US companies, including those operating in the Silicon Valley, to be listed on the WSE. Silicon Hill Ventures LLC will also provide advisory to small and medium-sized enterprises interested to raise growth equity in an IPO.
The WSE IPO Partners include: Altera Finance, Sokrat Capital, Millennium Capital, Financial and Analytical Group Pro-Consulting Ltd., Concorde Capital, Aval-Brok and Fund of Industrial Development in Ukraine, Hansabank in Estonia (operates in the Baltic States and Russia), INFIN in Turkey, Uniter Investment Company JSC and Priorbank JSC in Belarus, Wood & Company and Cyrrus, a.s in the Czech Republic, US Finance Connect LLC and Silikon Hill Ventures LLC in the USA, Renaissance Securities Ltd in Cyprus.
The fifth series of express certificates (with the issuer’s early redemption options) issued by Deutsche Bank London were introduced to trading on the WSE on 18 December. The certificates are the issuer’s ninth product listed on the WSE.
The main parameters of the certificates:
- Nominal Value: PLN 100
- Issue Price: 100% of Nominal Value
- Maturity: 17 November 2011
- Listed on the parallel market in the continuous quotations system;
- Listed in PLN.
On 22 December 2008, the WSE Management Board adopted a resolution prolonging the validity of the zero rate of fees charged from issuers of option warrants and structured certificates. The zero rate of the fees applies from 1 January to 30 June 2009. The growth rate of structured products listed on the WSE is impressive: 26 new certificates were listed in 2008 on the WSE. By the end of 2008, the WSE listed 46 structured products (10 bonds and 36 certificates).
The value of trading in all listed structured products was close to PLN 138 million in January-November 2008.
As of 1 January 2009, the Warsaw Stock Exchange has reduced by 37% the monthly fee charged from exchange information vendors for retail customer access to real-time information on the five best buy and sell offers, a part of the order book during trading sessions. As of the New Year, the monthly fee will be reduced from PLN 109 to PLN 69 per retail subscriber using information supplied by the vendor.
The monthly fee charged from vendors for giving institutional and retail subscribers access to the full buy and sell order book has been reduced by 7.5%. As of 1 January 2009, the fee will be reduced from PLN 147 to PLN 135 per subscriber.
Decisions to reduce fees for end clients (subscribers) will depend on individual information vendors.
The WSE fee reduction is another important step in the WSE’s multifaceted efforts to improve the liquidity of exchange trading.
Exchange Members
The brokerage house Dom Maklerski Polonia Net S.A. with its registered seat in Kraków started operations on the WSE as of 1 December. The new Member trades in all financial instruments on clients’ account.
Dom Maklerski Polonia Net S.A. offers services including trading in financial instruments and raising equity in public offerings and private placements of securities, as well as support in PR and IR campaigns of public offers.
GOLDMAN SACHS INTERNATIONAL, a Remote Exchange Member, started operations on the WSE, including trading in all securities on own account and clients’ account, as of 2 December. GOLDMAN SACHS INTERNATIONAL is the fourth Member from the UK to start operations on the WSE.
Goldman Sachs International is a member of The Goldman Sachs Group, Inc., New York, an institution with 100 years of tradition and an international reputation. Listed on NYSE EURONEXT, The Goldman Sachs Group, Inc. is one of the world’s largest bank holdings.
The Exchange Member Copernicus Securities S.A. expanded the scope of its operation on the WSE as of 19 December. Currently, Copernicus Securities S.A. trades in all securities on own account and on clients’ account.
At the end of 2008, the WSE had 49 Exchange Members, including 18 Remote Exchange Members in Hungary, the Czech Republic, Austria, the United Kingdom, France, Germany, Sweden, Slovakia, and Estonia.
Key Statistics
For more statistics see Monthly Statistics.
New Listings
Ruch Chorzów is the first Polish sports club to be listed since it joined NewConnect on 4 December. Ruch Chorzów is one of the most established and successful football clubs in Poland. The club has won the Polish Championship in Football 14 times, the Polish Cup three times, and has played in the quarter-finals of the European Cup twice.
The company PSW Holding was listed on NewConnect on 5 December. The company’s core business includes wholesale of hard coal, sale of brand-new and second-hand vehicles, transportation, dispatching and logistic services in Poland and the EU, property development, investment, and production of clothing.
The company Fabryka Diet was listed on 12 December. Fabryka Diet is a marketing and media company in the healthy lifestyle and food sector. The company promotes healthy nutritional habits using recent medical and dietary advice, mainly through physical exercise supporting dietary regimes and improving fitness and vigour. The company mainly operates the community web portal at www.fabrykadiet.pl.
The company Symbio Polska was listed on NewConnect on 15 December. The company operates two core businesses:
- production and distribution of food products in Poland and in exports;
- production of materials used for food production.
The company co-operates with over 300 farms and sells products across Europe and North America.
The company INTERNITY was listed on NewConnect on 16 December. The company’s core business includes retail sale and wholesale of ceramic tiles, bathroom and heating fixtures, and services consisting in turn-key finishing of buildings and facilities, from design through product sourcing to finishing work.
The company PREMIUM FOOD RESTAURANTS SA was listed on 18 December 2008. Premium Food Restaurants operates 11 casual dining Japanese food restaurants, including 10 sushi restaurants under the 77 Sushi Brand. In addition to restaurants, the company is currently developing a new sales structure in catering.
The company Automatyka Pomiary Sterowanie was listed on 19 December. The company offers complex industrial automatics services. The company’s business includes among others installation, repair and maintenance of power systems, measurement and control services, and activation of power equipment. The company develops industrial process control systems, and installs and maintains measurement, control, research and test instruments and equipment.
Market Members
The brokerage house DM POLONIA NET S.A. became a NewConnect Market Member on 1 December.
Other Events
Block trade is available to NewConnect investors as of 2 December. The NewConnect Rules set out the conditions necessary for block trade, including the minimum value of trade at PLN 100,000 and the price differential against the last session at not more than 20%.
On 5 December 2008, the WSE Management Board adopted a resolution concerning temporary restriction of the scope of broker’s orders accepted for execution on the WSE Main List and the NewConnect market. Pursuant to the Resolution, the following types of broker’s orders will not be accepted for execution on the NewConnect market between 1 January 2009 and 30 June 2009:
1) must-be-filled orders (MFO);
2) market orders (MO);
3) at-the-opening market orders (OMO).
An exhibit of Max Novak-Zempliński’s paintings was open on the NewConnect floor on 11-22 December. Maksymilian Novak-Zempliński, born in Warsaw in 1974, graduated cum laude from the European Art Academy. His art can be described as neo-symbolic. The opening event brought together over 250 fans of Max Novak-Zempliński’s talent.
The exhibit was held as a part of the project “WSE – being professional in EXploration and NEW/CONNECTions”.
The WSE evaluated Group 4 of Nominated Advisors operating on the NewConnect market. On this basis, the WSE confirmed the authorisation of 19 Nominated Advisors. Group 4 of Nominated Advisors was the last group to be evaluated in 2008.
Key Statistics
For more information see the NewConnect website.