Today, we decided to present you with a brief overview of CROBEX constituents’ free float.
In our analysis we considered free float to equal all individual shareholdings lower than 5%, while pension funds, UCITS funds and government were considered as free float regardless of their shareholding percentage.
Free Float of CROBEX Constituents (%)
Among the 24 CROBEX components just a third of them have a free float higher than 50%, indicating that two thirds of CROBEX components are still held by a small group of majority shareholders. Of the constituents, there are two companies that have free float over 90% – Ingra with a free float of 93.61% and Adris (preferred) of 91.3% of free float.
On the other hand, ZABA, Kraš and Petrokemija have less than 10% of free float. ZABA has free float of 3.80% and is almost completely owned by Unicredit 84.48% and Allianz 11.72%, while Kraš has free float of 8.29% with Mesna Industrija Braća Pivac holding the majority share of 54.95%.
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 (Petrokemija, ZABA, Kraš, Saponia, Brodogradilište Viktor Lenac and HPB).
If we were to calculate free float of CROBEX constituents while excluding pension funds, the results would be slightly different for some, but significantly different for other companies. Namely, Croatian pension funds hold HRK 14.8bn of total market capitalization of ZSE, meaning a considerable part of free float of some constituents is technically “locked in”
When looking at share of companies’ float held by pension funds, we see that they have largest share in Končar (50.18%), Podravka (46.05%) and TNG (34.24%).