Prime Market is a market intended for trading in the largest and most prestigious issues of shares in the Czech and foreign companies. The Prime Market may accept either the issues which meet the demanding statutory requirements of the official securities market or the statutory requirements of the regulated market.
The companies, whose shares are marketed on the Prime Market, are imposed high demands. If they adhere to the statutory rules of the Official Market they must meet the following criteria:
Upon its admission to the Prime Market each issuer undertakes to fulfil its disclosure duty in Czech, Slovak or English.
Now, what are the key prerequisites for a successful candidate whose shares would be traded on the Prime Market:
Admission to the Prime Market does not only bring the funds to the company but it means much more. Upon its admission to the Prime Market, the company is becoming one of the top companies in the region thereby gaining prestige, which represents not only a useful tool but also a commitment. Henceforth, you are becoming the ones to pace the development and the ones to look up to with admiration.
It is possible to launch the conditional trading in issues of newly subscribed shares which have not yet been accepted for trading up to 10 days in advance of the regular trading on the Prime Market. This service is particularly important from the point of view of the investors who acquired the shares in the IPO process and who are allowed to commence trading in these shares immediately. Therefore, they do not have to wait for the very issue of the securities. Thus, the Prague Exchange in the case of dual listing commences trading in the relevant issue several days earlier than the other markets.
For the issues to be accepted to the Prime Market, the following must be submitted:
The Listing Exchange Committee must decide on the admission of an issue within 15 days of the delivery of the respective application. For the year the issue is admitted to the Exchange, the issuer is exempted from the fee for marketing its issue.