Armenian companies can enter Warsaw Stock Exchange with IPO through  cross- or dual listing 

ArmInfo. Armenian companies will be able to enter the Warsaw Stock Exchange with an IPO through cross- or dual listing mechanisms. This was reported to ArmInfo by Grzegorz Kucharski, the representative of the Warsaw Stock Exchange (WSE) on the board of the Armenian Stock Exchange (AMX), answering a question  about the possibilities of Armenian companies entering the European capital market.

According to Kucharski, the WSE is under the jurisdiction of the  European Union and its regulatory framework, making direct entry for  companies from non- EU countries impossible. However, according to  him, indirect entry is possible through establishing organizations or  subsidiaries in EU member states, like Cyprus or the Netherlands.  Then, according to him, a company, looking to raise funds on the  European capital market, will fall under the single European  regulatory framework. As an example, Kucharski pointed out over 10  Ukrainian companies successfully listed on the WSE by opening  representative offices in various European countries and going  through the listing procedure.

According to him, this procedure is not expensive and will not  require large costs compared to the significant capital that can be  attracted from foreign investors through the Warsaw Stock Exchange.   Chairman of the Board of the Armenian Stock Exchange Hayk Yeganyan,  also emphasized the importance of organizing dual or cross-listings  between the Armenian and Polish capital markets. He noted that AMX is  currently working on linking the platforms of the two related  exchanges in two areas: the foreign exchange market and government  debt securities. A prerequisite for pairing exchange trading is the  ability to cooperate between depositories and to conduct clearing  operations based on the Warsaw Stock Exchange. Additionally,  regulatory acts on the mutual recognition of exchange procedures and  equivalence of the exchange ecosystem will  need to be signed.

As for the mutual trading of equity (corporate) securities (shares),  according to Yeganyan, it is still too early to discuss this. This is  mainly due to the limited number of issuers on our market (11  companies), and their current lack of attractiveness on the  international market. , Yeganyan emphasized. It should be  noted that the dual listing mechanism involves listing a security on  two or more exchanges. The primary advantage of dual listing is  increased access to additional capital and liquidity. Cross-listing  allows a security to be listed simultaneously on multiple stock  exchanges.

It should be noted that the Warsaw Stock Exchange is one of the  largest stock exchanges in Central and Eastern Europe, with a market  capitalization exceeding EUR 260 billion and over 400 public  companies listed on the exchange. The WSE offers a wide range of  products and services - trading in shares, derivatives, fixed income  instruments and structured financial products. Additionally, the WSE  has its own stock indices.  Recall that on May 24, 2022, the Central  Bank of Armenia approved the acquisition of 65.03% of the shares of  the Armenian Stock Exchange by the Warsaw Stock Exchange. On June 28,  2022, the Warsaw Stock Exchange acquired 65.03% of the Armenian Stock  Exchange shares (AMX).