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- The capitalisation of NewConnect listed companies is close to PLN 10 billion
- Companies have raised PLN 4.7 billion in IPOs and SPOs on NewConnect
- 59 companies have transferred to GPW’s Main Market in the decade of the alternative market NewConnect
The Alternative Trading System NewConnect is now ten years old. It lists 405 companies with a total capitalisation of PLN 9.95 billion. Listed companies have raised more than PLN 4.7 billion in IPOs and SPOs over the decade (as at 31 July 2017) and paid out more than PLN 511 million of dividends since NewConnect opened.
“NewConnect was designed for dynamically growing companies which need a capital injection to grow. Listing on the public market provides them with a valuation of shares and enhanced recognisability and prestige. NewConnect has been very successful as an important source of financing for hundreds of companies, mainly SMEs which play a key role in the Polish and European economy. Another measure of NewConnect’s success is that 59 companies have transferred to GPW’s Main Market,” said Michał Cieciórski, Vice President of the GPW Management Board.
NewConnect has a strong international position as measured by the number of listed companies (second biggest European alternative market) and by capitalisation (seventh biggest market in Europe according to FESE 2016 statistics).
Ten issuers have been newly listed on NewConnect in 2017 and their IPOs were worth more than PLN 63.27 million in total. 59 companies have transferred to GPW’s Main Market since NewConnect opened; they now account for 12 percent of the total number of listings on the Main Market. NewConnect companies represented one-third of all new listings on GPW’s Main Market in the last few years.
Companies listed on the alternative market represent diverse industries with the biggest numbers of companies in the following sectors: IT (44), construction (36), media (36) and corporate services (29).
The biggest number of NewConnect issuers by region come from the Mazovian Region (164) followed by the Lower Silesian Region (53) and the Silesian Region (46) as well as Greater Poland Region (29).
“NewConnect remains most popular among individual investors. Retail investors generated 77 percent of all trade in H1 2017. NewConnect lists many companies with strong fundamentals which provide shareholders with returns,” said Michał Cieciórski.
In view of market participants’ expectations and opinions, GPW started a reform of NewConnect in 2012. It covered the key areas of the market. Modifications of the criteria of introduction into trading, disclosure obligations, sanctions, etc., have improved the quality and safety of the market. The GPW Management Board appointed a Council of Authorised Advisors two years ago. Thanks to the Council, Authorised Advisors have more responsibility for the market and help it develop. In September 2016, GPW introduced new segments on NewConnect: NC Focus, NC Base and NC Alert, in order to restore confidence in the alternative market, make it more attractive to different investors groups, improve the safety of trading and enhance transparency.
