In response to the rising interest in share trading and the interest in stock exchange listing expressed by companies operating in fast growing sectors the Copenhagen Stock Exchange now launches the Copenhagen Stock Exchange's Growth Market - KVX. The Exchange wishes to make stock exchange listing attractive to primarily young companies operating in the IT technology, telecommunications, medical or bio-technological sectors by placing such companies on a separate market - the KVX Growth Market.
In connection with the growth market the Exchange launches a new index - KVX, which comprises all the KVX companies. In this way focus will be on the overall development of these companies. Companies that are represented on the KVX Growth Market will be included in the new KVX Share Index as well as the KF mX Index, the All-Share Index and the respective sub-group indices.
"We now believe that there is a sound and firm basis for opening a new market segment for growth companies," said President and CEO Hans-Ole Jochumsen. "It is a good thing for the Danish equity market that we open the KVX Growth Market with its own index - the KVX Index. Investors may thus compare the performance of the Danish listed growth companies with similar indices on foreign markets," the President and CEO concluded.
KVX Growth Market listing rules
Admission to listing on the KVX Growth Market is subject to exactly the same listing requirements etc. that apply to other listed companies.
Companies applying for listing on the KVX Growth Market will in addition to the formal listing requirements be assessed primarily on the basis of expected growth rates and the fact that the companies operate in the IT technology, telecommunications, medical or bio-technological sectors. The risk profile of these companies is therefore expected to be relatively high.
Companies, which are admitted to listing on the Copenhagen Stock Exchange, may join the KVX if they meet the following eligibility criteria:
The company operates in the information technology, telecommunications, medical or bio-technology sectors; The company expects to reach an annual growth rate of at least 20 per cent; The company's expected market capitalisation after it has gone public is DKK 300 million or more; The existing shareholders will in connection with the introduction to stock exchange listing not sell more than ½ of the holding of shares that they held prior to the introduction, and they shall declare that they will not dispose of further shares for a minimum of 12 months after the introduction; If the company operates at a loss, it must in connection with the admission to listing render probable that it has available funds to carry on the business for not less than 2 years after the admission to listing.
In consultation with the listed companies that meet the eligibility criteria, the Copenhagen Stock Exchange has placed the following companies on the new list: 2M Invest; Columbus IT Partner;.Damgaard; eHuset; i-data international;.M&E Biotech; Memory Card Technology; RTX Telecom; SimCorp.
Already listed companies may currently be transferred to the KVX Growth Market.
KVX Growth Market constituents will be placed in a special section in the Official Price List and at the Exchange's web site, www.xcse.dk. The heading will say 'KVXâ companies' and will be placed immediately after 'KFXâ companies'. Thus the KFX companies will no longer be included under 'Ultra-liquid shares'.
The group 'Liquid and less traded shares' will be renamed 'Other companies'.
Read 'Criteria for Inclusion of Companies in KVX - Copenhagen Stock Exchange's Growth Market': http://www.xcse.dk/uk/bestilling/regel/kap06-02uk.pdf
