Five years of the START market, news and upcoming changes

Five years ago, specifically on 2 May 2018 at 15:37, the first ever order was received in the underwriting of new companies heading to the START market. It was an order for 1,250 Prabos Plus shares. The subscription was successfully completed on 15 May 2018. Along with Prabos, Fillamentum also entered the market. These two companies became the first ever issues traded on the START market. So far, 14 companies have entered the market and managed to raise over CZK 2 billion from more than 10,000 investors. Over 10,000 orders have been placed in primary subscriptions, from which nearly 8,000 orders have been matched. There are currently 13 companies trading on the market and several more issuers are preparing to enter the market this year.

The largest primary underwriting on the START market to date has been Gevorkyan, which has raised more than $727 million from investors. CZK 772m. It is also the first Slovak company ever to successfully enter the market.

The START market, which is the youngest of the four markets of the Prague Stock Exchange, is designed for small and medium-sized companies. The primary objective in creating the rules of this market was to reduce the barrier to entry on the part of issuers to the lowest possible level, while maintaining a high level of transparency. For investors, the market provides an opportunity to invest in smaller Czech and Slovak companies. The investor base of the START market consists of retail investors, local investment funds and, last but not least, the IPO fund of the National Development Bank.

News and upcoming changes

Publication of financial data

In order to further enhance transparency and access to information for investors, the exchange has started to publish financial data for companies traded on the START market. These include balance sheet, profit and loss account and selected financial ratios. The data can be downloaded in XLSX format and used for further processing.

Calendar of information obligations

Issuers of the START market voluntarily send information to the Exchange on the dates of disclosure of basic information obligations. These dates are now published in a clear calendar of information obligations, where the dates of the START Days are also published.

Continuous trading

In view of the demand from investors, exchange members as well as some selected issuers, the exchange will change the way issues are traded on the START market. Previously, issues were traded daily in a separate auction from 9:00 to 12:35. As of 1 September 2023, all issues on the START market will be traded in a continuous mode, i.e. in the same way as other shares on the PRIME, STANDARD and FREE markets. Trading in the continuous mode runs from 8:50 a.m. to 4:25 p.m. “The introduction of the continuous trading mode is mainly aimed at enhancing transparency. For investors, this mode of trading will be more transparent. A secondary effect may also be higher liquidity, although this is not the main motive for this modification”, says Petr Koblic, CEO of the Prague Stock Exchange.