Today, we decided to present you with a brief overview of CROBEX constituents’ free float as CROBEX’s composition changed recently.
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
With the current CROBEX’s composition, half of CROBEX constituents have free float higher than 50% indicating that the remaining 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 Atlantska Plovidba with a free float of 15.8%, 18%, and 20.1%, respectively.
We note that this year 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. Further, Atlantska Plovidba’s free float decreased to 20%, mainly due to Tankerska Plovidba’s share of 71.4%.
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 3.1bn of the current total market capitalization of ZSE. This amounts to 12.1% of the current market cap of ZSE equity which amounts to EUR 25.5n.
