In brief

• The government has adopted a draft amendment, UC137, which is meant to make it easier for small and medium-sized companies to raise capital on the stock exchange.
• The threshold requiring a full prospectus may rise from EUR 5 million to EUR 12 million.
• The draft simplifies documentation and the rules for investment analyses, which may lower the costs of listing.

Lower costs of entering the market

The government has adopted draft regulations intended to make it easier for small and medium-sized companies to finance their growth through the stock exchange. The draft is designated UC137 and forms part of the EU Listing Act package. Its aim is to increase the attractiveness of European stock exchanges and simplify procedures that, for smaller issuers, often mean high costs and complex documentation. (Giełda nie tylko dla gigantów. Nowe przepisy mają pomóc średnim firmom – mycompanypolska.pl)

Higher prospectus threshold

The most important change is raising the value of a public offering above which a full prospectus must be prepared. The threshold is to rise from EUR 5 million to EUR 12 million. For smaller issues, companies will prepare an information memorandum, whose scope is to be narrower.

What changes for companies

As a result, firms that previously abandoned a listing because of the costs of preparing an offer may consider entering the capital market. Detailed conditions will depend on the final shape of the regulations.

What's next

The draft will now go through further legislative work. Only once that is complete will it be clear in what form the changes will take effect.

Read also

• Rząd chce uprościć giełdę dla mniejszych spółek. Próg prospektu od 12 mln euro