August 24 (SeeNews) - The Zagreb Stock Exchange said it is revising the rules for the operation of its Prime Market in a bid to help restore investor confidence in the Croatian financial market.
Croatia's financial regulator, HANFA, approved on Thursday changes to ZSE rules, ZSE said in a statement.
"Following these changes, the conditions for entry into the Prime Market should provide investors with an even higher level of transparency and corporate governance standards, while the Exchange will closely monitor their continued compliance," the bourse operator explained.
"By doing this, the Prime Market will become an example of best market practice, making the issuers and the overall market more recognizable to investors," ZSE commented, adding that the higher level of transparency could potentially positively impact stock prices and liquidity.
According to Croatia's news portal Poslovni.hr, only companies worth over 500 million kuna ($77.6 million/67.1 million euro) will be able to enter the Prime Market. The companies will also need to have more than 1,000 shareholders and a free float share of at least 35%.
Only seven companies meet the new criteria to join the Prime Market, Poslovni.hr said. These are Atlantic Grupa, Valamar Riviera, Hrvatski Telekom, Adris, Tankerska Next Generation, Arena Hospitality and Podravka. AD Plastik and Atlantska plovidba meet most of the requirements.
Currently, the bourse's Prime Market does not include any companies.
The ZSE was rocked last year by the financial crisis in Croatia's ailing Agrokor concern. At the heat of the crisis in early 2017, an analyst at the local unit of Erste Bank told SeeNews that investors are concerned over the impact future events in Agrokor may have on the Croatian economy and the key companies exposed to the concern.
The bourse's Prime Market has been a part of the bourse structure for some time, but has never included any companies.
($=7.4531 kuna)