After the consultation phase involving "New energy to Danish equities", the Exchange has now determined the qualification requirements for the two new segments, MidCap+ and SmallCap+ and their related indices for the respective small and medium-sized Danish shares. The companies distinguish themselves by high turnover, low spreads and high order coverage. To this should be added that the companies communicate more frequently and more directly with the financial market, the investors, the employees and other stakeholders about the company's activities and financial position than provided by the rules of the Copenhagen Stock Exchange. Companies included in the new segments all publish quarterly reports for example.
Based on the consultation phase, the Exchange has adjusted and specified the criteria for being elected to the segments. The most important element is that the turnover requirement for 2003 has been adjusted with a view to giving the companies a chance to initiate measures that may increase the turnover so that they may meet the ordinary requirements. Moreover, the companies will be given more time to meet the requirement of investor presentations in sound or sound & picture via their websites. Finally, special rules have been implemented for SmallCap+ companies that are in the middle of a positive development and are growing out of the SmallCap+ segment. This means that these companies for a limited period of time will either remain in the SmallCap+ segment or will be transferred to the MidCap+ segment under special terms.
President and CEO Hans Hans-Ole Jochumsen says: "The consultation phase confirmed our understanding that a strong wish exists for establishing new initiatives to increase the turnover on the equity market.
We have received many good comments which we have used when establishing the rules applicable to the new MidCap+ and SmallCap+ segments which we believe will inspire many companies to make special efforts to support an active life for their shares on the Exchange.
It is gratifying to see that the first companies have already elevated their information level or have launched initiatives to strengthen the liquidity of their shares. They have done this by publishing announcements in English to the Exchange and/or have entered into market maker agreements that ensure narrow spreads and high order coverage.
Basically, it is up to the company itself to ensure that its shares live an active life on the Exchange. The Exchange will support and serve as a catalyst for the companies' efforts to strengthen the liquidity of their shares. Together we can give new energy to the Danish equities."
The composition of the new segments is described in 'New energy to Danish equities", which is accessible from the Exchange's website, www.xcse.dk.
We have calculated a preliminary selection for the future segments - the reference period being from May to October this year. The selection shows that 12 shares would be eligible for MidCap+ and 19 shares for SmallCap+. This means that these companies meet the requirements to liquidity, spread, order coverage and quarterly reports. We expect that the number of companies eligible for the new segments will continue to climb before the introduction of MidCap+ and SmallCap+. More companies may qualify through an improved information level or if they meet the minimum requirements to spread or order coverage by way of a market maker agreement.
Preliminary list of companies included in MidCap+
| MidCap+ | |
| Sector | Company |
| 15 Materials/ 1510 Materials | Auriga Industries B |
| 20 Industrials/ 2010 Capital Goods | FLS Industries B |
| 20 Industrials/ 2030 Transportation | DFDS |
| 20 Industrials/ 2030 Transportation | Københavns Lufthavne |
| 25 Consumer Discretionary/ 2520 Consum. Durables | Bang & Olufsen B |
| 30 Consumer Staples/ 3020 Food, Beverage & Tobacco | Bryggerigruppen* |
| 30 Consumer Staples/ 3020 Food, Beverage & Tobacco | Østasiatiske Kompagni |
| 35 Health Care/ 3510 Health Care Equipment & Services | Radiometer B |
| 35 Health Care/ 3520 Pharmaceuticals & Biotechnology | Chr. Hansen Holding B |
| 35 Health Care/ 3520 Pharmaceuticals & Biotechnology | Genmab |
| 40 Financials/ 4010 Banks | Sydbank |
| 40 Financials/ 4030 Insurance | Codan |
Companies marked with * have been selected based on 'run-in' requirements.
Potential candidates for MidCap+ can be found on the Exchange's website.
Preliminary list of companies included in SmallCap+
| SmallCap+ | |
| 15 Materials/ 1510 Materials | Brdr. Hartmann B |
| 20 Industrials/ 2010 Capital Goods | DLH B |
| 20 Industrials/ 2010 Capital Goods | Flügger B |
| 20 Industrials/ 2010 Capital Goods | Højgaard Holding A |
| 20 Industrials/ 2010 Capital Goods | Højgaard Holding A |
| 20 Industrials/ 2010 Capital Goods | Satair* |
| 20 Industrials/ 2010 Capital Goods | Per Aarsleff B |
| 20 Industrials/ 2030 Transportation | D/S Torm |
| 30 Consumer Staples/ 3020 Food, Beverage & Tobacco | Harboes Bryggeri B |
| 30 Consumer Staples/ 3020 Food, Beverage & Tobacco | Hedegaard* |
| 40 Financials/ 4010 Banks | GrønlandsBANKEN |
| 40 Financials/ 4010 Banks | Nordvestbank* |
| 40 Financials/ 4010 Banks | Ringkjøbing Bank |
| 40 Financials/ 4020 Diversified Financials | Luxor B |
| 40 Financials/ 4040 Real Estate | Jeudan |
| 40 Financials/ 4040 Real Estate | Nordicom |
| 45 Information Technology/ 4510 Software & Services | Danware |
| 45 Information Technology/ 4510 Software & Services | EDB Gruppen |
| 45 Information Technology/ 4520 Tech Hardware | Danionics |
Companies marked with * have been selected based on 'run-in' requirements.
Potential candidates for SmallCap+ can be found on the Exchange's website.
Asger Domino President & CEO of Brdr. Hartmann, qualifier for SmallCap+, comments: "It is very positive that the Exchange through its new SmallCap+ and MidCap+ segments supports the listed companies that are making a special effort to communicate with the investors. The new 'plus segments' will undoubtedly be of great advantage to both the investors and the companies and will at the same time be an inspiration to the companies that are not included in the new segments from the beginning."
