NewConnect – WSE Equity Market

NewConnect – WSE Equity Market – is the official name of the WSE alternative trading system. Mr Ludwik Sobolewski, WSE CEO, jointly with Mr Marcin Gomo?a, Polish Financial Supervision Authority Vice-Chairperson, have presented the logo as well as the name of this new trading platform during a special press conference held at the WSE on May 23. Apart from numerous journalists, the event was attended by individuals involved in building NewConnect – the new trading platform for growth enterprises.

- ‘NewConnect is part of WSE strategy aimed at building a regional centre of equity trading. Our strategy is being implemented, as the creation of NewConnect shows.’ – Mr Sobolewski said in his speech. – ‘I would like to add that our endeavours are also being noted and covered by media in the CEE region’.

Mr Sobolewski expressed his appreciation to the Polish Financial Supervision Authority (KNF) for approving the NewConnect Rules and Regulations. He also thanked the KNF employees engaged in the project, for their commitment.

In his speech, KNF Vice-Chairperson, Mr Marcin Gomo?a, stressed the importance of NewConnect in the development of Polish equity markets. He wished all the best of luck to the WSE, the companies and investors.

On May 22, the KNF univocally accepted the NewConnect Rules and Regulations. – ‘I hope that this alternative trading system will facilitate access to capital for SMEs with short history of operations’ –
Mr Stanislaw Kluza, Polish Financial Supervision Authority Chairperson, said following yesterday’s KNF meeting.

- Thanks to NewConnect, innovative enterprises will have the possibility to finance their projects. The alternative trading system is complementing our offer directed to SMEs.’ – Mr Sobolewski pointed.

The NewConnect market will be operated by WSE and will have fewer requirements for listed companies than the regulated market. NewConnect will offer less expensive listing and less restrictive reporting obligations.

NewConnect will help finance the evolution of small companies with good prospects for growth, and a short history thus not meeting the listing requirements of the main WSE market. The issuers on NewConnect will most likely be companies with PLN 20M capitalization and offering between a couple hundred thousand to several million PLN in IPO. – ‘We expect to see around 3 companies at the start of NewConnect, and 10 toward the end of the year’ – said Mr Sobolewski during the conference.

Among NewConnect investors, the WSE will see Venture Capital and Private Equity funds as well as specialized closed-end and asset management funds. We will also attract individuals with substantial financial resources and risk tolerance.

Trading on NewConnect will take place Monday to Friday from 10.00 to 14.00, on the WSE WARSET trading system. The quotation system will be either order or price driven. In the latter case, a market maker will be involved. The following instruments may be quoted: shares, pre-emptive rights, rights issues and depository receipts.

The English-language version of the NewConnect web site, offering extensive information about the new market, will be launched in July 2007.