Today, we decided to present you with a brief overview of SBITOP constituents’ free float.
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.
Free Float of SBITOP Constituents (%)
Source: LJSE, InterCapital Research
Among the SBITOP constituents, four of them have a free float higher than 50%, while the other five constituents are still mostly held by a small group of majority shareholders. Of the constituents, Krka has by far the highest free float amounting to 73.1%. On the other hand, Zavarovalnica Triglav, Telekom Slovenije, Luka Koper, Equinox and Sava Re have less than 50% of free float. Zavarovalnica Triglav and Telekom Slovenije have a free float of 30.7% and 31.9%, respectively. They are followed by Luka Koper with a free float of 37.9% and Equinox with a free float amounting to 42.8%.
Comparing both medians and the mean of the free float of CROBEX and SBITOP constituents, as main indices on ZSE and LJSE, a similar situation occurs. Free float of SBITOP constituents median amounts to 47.3%, while the CROBEX median for the same parameter amounts to 50.9%. Meanwhile, the mean for SBITOP constituents amounts to 49.3%, while the mean for CROBEX amounts to a slightly higher number of 50%. The important thing to stress out is that the data range for CROBEX constituents is wider and has a higher deviation than the data range for SBITOP constituents, which shouldn’t come as a surprise as CROBEX has more constituents within the index itself.
We should emphasize that the Prime market is the most demanding market on the Ljubljana Stock Exchange regarding the requirements set before the issuer. It is worth noting that it requires the issuer to fulfill additional liquidity criteria, which will result in greater volume, a higher number of trades and therefore reducing “hidden” costs (like high bid-ask spread resulting from illiquidity).