On May 21 a new list structure will be introduced on OMX stock exchanges in
Tallinn, Riga and Vilnius. The new list structure will have two notable changes:
modified admission and listing criteria on Baltic Main List and a new list -
Baltic Secondary List - created by merging current Baltic I-List with Free List
in Riga.
Due to changes in list structure, all current Tallinn I-List issuers - AS Kalev,
Saku Õlletehase AS and AS Viisnurk - will be transferred to the Baltic Main
List as of Monday, May 21.
List rearrangement is the next step towards creation of fully integrated Baltic
securities market. At present 99 companies are listed on Baltic market with
market capitalization exceeding 14 billion euros. Changes in existing list
structure are aimed at harmonization of the market structure and market
practices across Baltic exchanges, thus increasing its attractiveness to
investors.
Baltic Main List
New admission and listing criteria will be applied to the Baltic Main List.
Issuers on Baltic Main List will have to meet one of the following free float
criteria: at least 25% of shares (the current criterion) or shares worth at
least EUR 25 million must be held in public hands (free float shares).
Compliance of issuers with above-mentioned criteria will be assessed on a
regular basis in order to provide investors with constant access to high-quality
investment opportunities.
The new requirement is a step towards higher liquidity on the Baltic Main List
and will benefit the companies that wish to attract higher interest from
investors. This initiative was supported during consultations with investment
specialists who claimed that free float value starting from EUR 20…25 million is
necessary to realize high quality investments and attract foreign institutional
investors.
At present there are 31 companies listed on Baltic Main List. For the first time
the compliance of issuers on the Baltic Main List with the new liquidity
requirements will be evaluated in November 2007. Companies that will not be able
to meet the requirements will be given 6 months transition period. In case of
compliance after the period, companies will remain listed on the Baltic Main
List. In case companies will not comply with the requirements after the
transition period, they will be transferred to the Baltic Secondary List.
New list - Baltic Secondary List
Changes in the list structure will affect companies on the current Baltic I-List
and Free Lists as both lists will be merged and companies on those lists will be
traded together in the same list - Baltic Secondary List. This move will reduce
current fragmentation of the lists in the Baltic market and will offer investors
clearer list structure. At present there are 37 companies listed on Baltic
I-list and 31 companies on Baltic Free list.
After list rearrangement companies on Baltic Secondary List will have no free
float requirements (as opposed to 15% or 25% requirement for I-List companies
now) but will have the same information disclosure requirements that are
applicable to I-List companies currently. After merger of the lists, current
Free List companies will be included in calculation of OMX Baltic All-Share
index, OMX Baltic Sector indexes and OMX Riga All-Share index. In addition to
that those securities will be classified in accordance with Global Industry
Classification Standard (GICS) improving their comparability with peer groups.
One of the reasons behind changes in list structure is introduction of
alternative marketplace First North in Baltic countries. First North will
operate in parallel to the regulated market, but with requirements that are
easier to fulfill.
After the list rearrangement and introduction of alternative marketplace the
Baltic market structure will consist of the following segments:
- Regulated market with two lists (Baltic Main List and Baltic Secondary List)
instead of three lists (currently) - as of May 21;
- Alternative market First North - to be introduced in the closest future.
For more information, please contact:
Tex Vertmann,
Communications Manager, Tallinn Stock Exchange +372 640 8862
Āris Dreimanis,
Head of Corporate Communications, Riga Stock Exchange +371 7212431
Gintare Blazyte,
Communication Manager, Vilnius Stock Exchange +370 5 272 34 58