Athens Stock Exchange: Main Market regulations changing – The new criteria for new listings and distribution

Radical changes to the Athens Stock Exchange that are planned to come into force in early 2024 are being promoted by the management of ATHEX, focusing on new listings, the dispersion of shares and fees. The aim of the interventions that will be reflected in the Stock Exchange operating regulations is to make the domestic stock market more attractive to the investment community, to strengthen trading activity and to upgrade the prestige of the Main Market.

According to what the CEO of the Stock Exchange, Giannos Kontopoulos, said during a press briefing, a minimum capitalization limit of 40 million euros is set for the companies that wish to be listed on the board, as well as a minimum limit of 25% regarding the dispersion of the shares of listed companies with a capitalization lower than 200 million euros and 15% for companies with a higher capitalization.

The control of free dispersion will be done on a continuous and permanent basis. “We want the funny business to stop with this process,” said Mr. Kontopoulos, clarifying that the new dispersion limits will also apply to already listed companies, although they will also be given a transitional period of one year.

Penalties are coming for dispersion below 10%

Penalties are expected for those who fail to comply, which will be finalized in the next period in consultation with the Capital Market Commission. Mr. Kontopoulos sent a message of almost zero tolerance for companies with a dispersion below 10%. “We will have very little tolerance for companies whose dispersion falls below 10%,” he said emphatically.

It should be noted that today, measures are taken for those companies that have a dispersion of less than 10% and less than 30 shareholders.

At the same time, ATHEX, in an effort to abolish the conditions that act as a barrier to the introduction of companies, intends to limit the time companies remain under surveillance and suspension. Changes are also underway in the Alternative Market regulation, which are to be announced on Tuesday, November 7.

In order to strengthen liquidity and trading activity, the institution of the special negotiator (market maker) is further promoted, in order to strengthen the secondary liquidity of listed companies.

Road Shows in London and New York

Regarding the burning issue of new introductions (IPOs), the CEO of HEXA noted that by the end of the year it is expected to welcome three companies, Orilina Properties, Trade Estates and Noval Property, while he mentioned that the reclassification of two companies is also expected. He also revealed that the introduction of three new companies to the Alternative Market is also being prepared.

Business… charm of new funds, however, will also be set up abroad, with Mr. Kontopoulos stressing that HEXAE is planning various roadshows, mainly the one that will take place for the second time in a row in London in collaboration with Morgan Stanley, as well as the investment roadshow that will held in New York on January 25 in collaboration with J.P. Morgan.

On “track” with developed markets

Mr. Kontopoulos made special mention of the return of the Athens Stock Exchange to the developed markets, and then the recovery of the investment grade by the Greek economy. As FTSE said, it found that the Greek market met the qualitative criteria in September, and it remains to be established whether the quantitative criteria related to capitalization and trading activity have been met.

He estimated that the Athens Stock Exchange will enter the “watchlist” for developed markets within 2024 and noted that this process usually takes one to a year and a half.