Provided the approval of ZSE, HT would become the 6th company in the prime market.
Yesterday, Zagreb Stock Exchange received an application of HT regarding transition of their shares from the Official to the Prime Market.
Prime Market is the most demanding market segment of the ZSE with regard to the requirements set before the issuer, especially in relation to transparency.
Some of the requirements before the issuer are the following:
- The issuer must have an investor relations function in place
- Free float min. 35%
- At least 1,000 shareholders
- Market cap. of minimum HRK 500m
- The issuer of shares shall enter into a market making contact with at least one market maker
- The supervisory board of the issuer must have at least one independent member
- At least one member of the audit committee shall be independent of the issuer
- Developed and disclosed dividend policy to the public
The Exchange shall decide on the received application and inform the investment public about the resolution. Provided the approval of ZSE, HT would become the 6th company in the prime market joining the company of AD Plastik, Arena Hospitality Group, Atlantic Grupa, Podravka and Valamar Riviera.
We support such an application of HT, which is already one of the most transparent companies on the market. Therefore, the addition of the company would be a step forward on making CROBEXprime a potentially better peer for Croatia than current CROBEX. The reason behind is that CROBEX consists of a large number of shares which many fund managers would not even include in their investment universe (due to extremely low liquidity, poor corporate governance), while CROBEXprime consists of less constituents, however the ones which are the most transparent and liquid.
