In brief

• The government has adopted draft UC137, part of the EU Listing Act package, which is meant to make it easier for smaller companies to list on the stock exchange.
• The offer value threshold requiring a full prospectus is to rise from EUR 5 million to EUR 12 million.
• The draft simplifies documentation and the rules for preparing investment analyses, which is meant to reduce issuance costs.

Draft UC137 and the EU Listing Act

Under the designation UC137, the government has adopted a draft amendment that is part of the EU Listing Act package (Giełda nie tylko dla gigantów. Nowe przepisy mają pomóc średnim firmom – mycompanypolska.pl). Its aim is to make European stock exchanges more attractive and to make it easier for companies to raise funds from investors. The greatest benefits may go to smaller issuers, for whom preparing a public offering is today often costly and labour-intensive.

Higher prospectus threshold

The most important change concerns the offer value above which a full prospectus is required. Issuers who decide on smaller offerings will prepare an information memorandum with a narrower scope.

Fewer formalities for issuance

The draft provides for simplified documentation and new rules for preparing investment analyses. The changes are meant to lower the costs of entering the capital market, which until now have discouraged smaller companies.

What comes next

The draft will now go through the further legislative process. If the rules take effect, the Warsaw Stock Exchange will be accessible not only to the largest enterprises.