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- The fourth edition of the Analytical Coverage Support Programme (PWPA) developed and financed by the Warsaw Stock Exchange will launch on 3 July 2023
- The new eligibility criteria for companies to join PWPA 4.0 include free float market value and the status of GPW Main Market issuer
- The objective of the Programme is to increase the number of analyst reports available to investors for companies listed on the Main Market (excluding WIG20 participants) with little analyst coverage
The Management Board of the Warsaw Stock Exchange (GPW) has decided to continue the Analytical Coverage Support Programme. The fourth edition (PWPA 4.0) will start at the beginning of July 2023 and run until the end of June 2025. The new edition of the Programme will follow several revised rules. First of all, the eligibility criteria for companies will include not capitalisation but free float market value (free float * capitalisation) and presence on the GPW Main Market. As a result, PWPA 4.0 is expected to cover more liquid companies whose analyst reports may be of interest to a larger group of individual investors. In addition, a simple form with a list of companies’ key economic indicators will be available to providers of analyst reports, facilitating investors’ insight into the issuers’ financial data.
“From our understanding, GPW’s Analytical Coverage Support Programme has been very extensive compared to other stock markets. We know that it enjoys a good reputation among capital market participants, which is why we have decided to launch the next edition. The programme framework has been finetuned over the three previous editions and was consulted with market representatives for each successive iteration. We hope that analytical coverage of companies participating in the Analytical Coverage Support Programme 4.0 will generate broader investor interest in them and, consequently, higher liquidity and turnover,” said Izabela Olszewska, Member of the GPW Management Board.
In the Exchange’s Analytical Coverage Support Programme, investment firms produce analytical reports financed by GPW. The objective of the Programme is to improve the availability of analytical reports for less liquid mid-cap companies, enabling investors to make informed investment decisions based on a reliable independent source of information about the issuers. A minimum of 50 companies listed on the GPW Main Market may qualify for the Programme (excluding stocks participating in WIG20).
Issuer eligibility criteria:
The Programme is open to companies listed on the Main Market as at 31 May 2023 (excluding those participating in the WIG20 index) which have not been covered by analyst reports in Polish in the last 12 months or have been covered by analyst reports provided by no more than one analyst (analyst reports containing a valuation and a directional recommendation). This number does not include analyst reports produced under previous editions of the Programme (a company which has participated in the Programme and is additionally covered by an entity outside the Programme may participate in the current edition). Additional requirements include the criterion of capitalisation of at least PLN 50 million (as at 31 May 2023) and free float exceeding 20% (as at 31 May 2023).
Investment firm eligibility criteria:
The Analytical Coverage Support Programme is open to investment firms which employ a minimum of three analysts (as at 1 June 2023) and have produced a minimum of 10 recommendations in Polish for companies listed on the Main Market (excluding WIG20 participants) or NewConnect in the last 12 months.
More than 2,400 reports have been published under the Programme since 2019. Analyst reports prepared in the previous three editions are available on GPW’s website and the websites of Exchange Members, and are distributed by major domestic and foreign agencies and industry media.
