The Warsaw Stock Exchange, the leading stock exchange in central and eastern Europe, with the market value of e224 billion has announced the opening of a new alternative trading system: NewConnect.
The NewConnect market will be operated by the Warsaw Stock Exchange and will have fewer requirements for listed companies than the regulated market. NewConnect may be used as a trading platform for dematerialized shares, allotment certificates, subscription rights, depositary receipts and other equity securities issued under applicable provisions of Polish or foreign law and introduced to trading.
NewConnect is designed for small and medium-sized companies, especially innovative enterprises with good prospects for development, that would like to be listed on the Warsaw Stock Exchange but expect less expensive listing and less restrictive reporting obligations.
Companies that are interested in the new market should be a party to the agreement with a nominated adviser. A nominated adviser is an investment company or another entity providing services related to business transactions, including financial and legal advice or financial audits, and entered into a register maintained by the Warsaw Stock Exchange.
NewConnect will function under provisions of Alternative Investment Market Rules, which have been prepared on the basis of the Polish Act on Trading in Financial Instruments of July 29 2005 and approved by the Polish Financial Supervision Authority.
The new market could be interesting opportunity for companies based outside the Republic of Poland as well as foreign investors.
NewConnect will start at the end of August 2007.