WSE to introduce PLN 0.5 threshold for stock valuation
December 3, 2013
All listed companies with share prices below PLN 0.5, irrespective of the level of price volatility, will be drawn onto a list of alerts and required to adopt a repair program aimed at raising the valuation above the threshold, WSE operator GPW said in a press release.
"Issuer whose shares are qualified to the 'list of alerts' segment for the second time in a row, i.e. as a result of two subsequent quarterly revisions, will be obliged to prepare and publish - within 30 days of the repeated qualification - a repair program showing measures that it intends to take" in order to raise valuation above the threshold, GPW said.
Failure to take effective measures will entail a risk of trade suspension or even exclusion from the WSE, GPW said.
Changes will take effect as of January 1, 2014, with the first quarterly revision of the list of alerts planned for March 27, GPW said.
The PLN 0.5 threshold will be in place from March 27 to the September quarterly revision, the statement read. The threshold will be lifted to PLN 1 from the December 2014 revision.
The proposed changes have been approved by the financial market regulator KNF, GPW said in a separate statement.