The WSE does not rule out that it will start excluding a penny from trading

WGPW, KPWiG, KDPW, biura maklerskie i inne...
JamesLucas
Starszy szeregowy
Posty: 2
Rejestracja: 31 paź 2020 09:56

The WSE does not rule out that it will start excluding a penny from trading

Postautor: JamesLucas » 31 paź 2020 09:57

Starting from 2014, the Warsaw Stock Exchange (WSE) will qualify all shares with a unit market value of less than PLN 0.50 per share in the Alert List, and from Q4 2014 the penny threshold will be set at PLN 1.

Penny companies will be obliged to adopt a recovery program, and those that do not take effective steps to remove the prerequisites for their eligibility for LA must take into account the possibility of suspension of trading in these shares, or even exclusion of the shares from stock exchange trading, GPW President Adam Maciejewski informed .

& # 8222; Work on introducing solutions aimed at solving problems related to trading in shares, the so-called penny companies, were run in a fully transparent manner with the participation of interested parties. We looked closely at the practices applied by other stock exchanges in the world, consulted the work of the Equity Market Committee, and as a result, we developed a solution aimed at persuading issuers to take effective measures to eliminate the so-called penny phenomena. In the interest of investors, we decided to implement the changes in a gradual manner, giving issuers enough time to effectively implement corrective actions, "said Maciejewski, quoted in the press release.

The WSE made decisions regulating the area of penny companies listed on the WSE Main Market, thus introducing solutions similar to those operating on other exchanges in the world. The changes are aimed at gradual elimination of the problem of listing companies whose price in the long term is below a certain penny threshold, and as a result they are to persuade listed companies to undertake actions changing this state of affairs.

The criterion for qualifying companies in this segment will be the average share price in the last three months. As before, qualification for LA will take place on a quarterly basis, two trading days before the last trading day of March, June, September and December.

The current pennies threshold, amounting to PLN 0.50, will be maintained in the initial period of the amendments, and ultimately this threshold will be PLN 1. It should be emphasized that the unit value of shares will be the only criterion for qualifying the shares to the Alert List. Thus, the WSE resigns from the second prerequisite for qualification to the Alert List of penny companies, i.e. high volatility of the share price.

In line with this approach, the shares with the average price lower than PLN 0.50 - for qualifications made from March 27, 2014 (until the quarterly qualification in September 2014 inclusive) will be eligible for the Alert List segment; 1 zloty - for qualifications made from the second session day before the last session day in December 2014.

Until now, the Alert List, apart from penny companies, included companies in bankruptcy or liquidation. After the change, this segment will be dedicated only to penny companies.

The consequences of qualifying the issuer's shares to the Alert List remain unchanged: removing the issuer's shares from the index portfolio, transferring them to quotation in the unified system, as well as a special designation of the issuer in the stock exchange's information services and in the subject to short sale.

The issuer whose shares will be classified in the Alert List segment for the second time in a row, i.e. as a result of two consecutive quarterly qualifications, will be required to prepare and publish - within 30 days from the date of this re-qualification - a remedial program indicating actions which it intends to undertake in order to eliminate the valuation below the penny threshold. A program aimed at increasing the share price level should contain a description of planned activities and a schedule for their implementation.

If an issuer is qualified to the Alert List for the sixth time in a row, trading in its shares may be suspended for up to three months. After the expiry of the 3-month suspension period, the WSE Management Board will be able to exclude the shares of the penny company from trading. In the case of both suspension and foreclosure, the stock exchange authorities will be able to depart from the decision if the degree of advancement of the company's activities aimed at eliminating the penny problem allows it to assume that the company will complete these activities until the next periodic qualification.

REKLAMA


Wróć do „Instytucje”

REKLAMA

Kto jest online

Użytkownicy przeglądający to forum: Obecnie na forum nie ma żadnego zarejestrowanego użytkownika i 12 gości