Today, we decided to present you with a brief overview of CROBEX constituents’ free float as the FY reporting season is soon to come.
In our analysis we considered free float to equal all individual shareholdings lower than 5%, while pension funds and UCITS funds were considered as free float regardless of their shareholding percentage.
Source: ZSE, InterCapital Research
Just more than half of CROBEX constituents have free float higher than 50% indicating that 50%+ of CROBEX constituents are still held by a small group of majority shareholders. Of the constituents, only Ingra and Adris (pref.) has a free float of over 90%.
On the other hand, ZABA and Kutjevo have less than 10% of free float. ZABA has a free float of 3.8% and is almost completely owned by Unicredit with 96.2% ownership. ZABA is followed by Plava Laguna, Brodogradilište Viktor Lenac, and HPB with a free float of 15.8%, 18%, and 25.4%, respectively.
We note that the only significant recent change occurred in Podravka’s shareholder structure, where Braća Pivac acquired >5% of the total shares outstanding, partially lowering Podravka’s free float on ZSE.
The prime market is the most demanding market on the Zagreb Stock Exchange regarding the requirements set before the issuer. It is worth noting that it requires the issuer to have a free float of at least 35%. If we were to compare CROBEX to that parameter, a few of the constituents would not meet the criteria (ZABA, Kutjevo, Brodogradilište Viktor Lenac, and Jadroplov).
If we were to calculate the free float of CROBEX constituents while excluding pension funds, the results would be slightly different for some, but significantly different for the majority of companies. Namely, Croatian pension funds held EUR 2.7bn of the current total market capitalization of ZSE. This amounts to 11.6% of the current market cap of ZSE equity which amounts to EUR 22.9n.