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).
