NewConnect is an exchange-regulated trading venue established by the Warsaw Stock Exchange 2 years ago to fund the development of innovative SMEs and provide a secondary market for their equity. The WSE alternative trading platform opened on 30 August 2007 with just five companies. Within a short time period, NewConnect became one of the most dynamic alternative markets in Europe.
NewConnect is among the youngest and fastest growing alternative markets in Europe. Even though this venue focuses on small and medium-sized businesses, its turnover ratio (measuring market liquidity) is one of the highest in Europe (compared to other venues of this type). The number of new listings is another noteworthy characteristic as NewConnect witnessed the highest number of IPOs so far this year among all alternative markets in Europe.
NewConnect has allowed innovative, small and medium-sized enterprises to raise approximately PLN360m (ca. EUR87.8m) of equity. At present, 97 companies are listed on the NewConnect market including one foreign (Photon Energy a.s. from the Czech Republic). So far, two companies have moved to the WSE Main List – Centrum Klima S.A. and MW Trade S.A.
Companies whose shares are already listed on NewConnect also decide to increase their shareholders’ equity through secondary offerings. A total of 22 listed companies have offered newly issued or existing shares worth ca. PLN58m (ca. EUR14.1m); approximately PLN12.5m (ca. EUR3.05m) was raised by company owners who sold their shares.
The capitalization (i.e. the market value of listed companies) of NewConnect currently stands at ca. PLN2bn (ca. EUR488m).
Recently (17-21 August), the turnover value on NewConnect hit a record-high level – PLN67.4m (ca. EUR16.4m) – which was the highest ever weekly turnover.
Selected NewConnect top values:
Record-high NewConnect market capitalization:
Record-high NC Index value:
*EUR/PLN rates as published by the National Bank of Poland on 1 September 2009.
