Start Market is a market of the Prague Stock Exchange designed for trading shares of smaller Czech and Slovak companies. If a company is a large stable corporation that reports in International Accounting Standards (IFRS), it should rather be interested in the Prime Market or Standard Market. If the company is not generating any revenues and does not yet have its own product or service, it is too early to consider going public and it is better to look for other types of financing.
- market for Czech and Slovak companies only
- reporting in local accounting standards
- state support through direct investment from the National Development Bank
- the subscription system is administered by the Prague Stock Exchange
- investor days, called Start Days, are organised by the Prague Stock Exchange
- the company's registered office in the Czech or Slovak Republic
- legal form of a joint stock company or European company (SE)
- book-entry shares in a Czech or Slovak central depository
- financial audit for the last 2 years or for the period of the company's existence
- application for admission and signed contract with the stock exchange
- a prospectus for the shares or a Union prospectus for the growth shares and the regulator's decision to approve it
- proof of ISIN allocation and proof of registration of the issue by the central depository
- due diligence report (basic legal due diligence)
- analytical report
- articles of association and extract from the commercial register
Samples of applications, contracts and other relevant documents will be provided by the Exchange upon request. Previously published prospectuses are archived in the register of the relevant regulator. Copies of prospectuses, analyst reports and due diligence reports are also filed in each issuer's Start Market tab.
The Chief Executive Officer shall decide on the acceptance of the share issue within 10 working days from the date of receipt of the application by the Stock Exchange.
Before entering the Start Market, the company organises a public offering of its shares, which lasts at least two weeks. The details of the public offering are set out in the prospectus and published on the company's website and the stock exchange. Investors place orders with their brokers, who are members of the exchange and are electronically connected to an IT system that the firm rents free of charge from the exchange. The system is administered by the exchange and the settlement of transactions is handled by a central depository.
After the end of the public offer, the subscription must first be settled by the central depository. This means that the new shareholders will receive their shares and the company will receive the funds. At the same time, existing shareholders who decide to sell their shares in the public offer will also receive funds. Settlement will take place at the same time and the issuer's shares will start trading on the stock exchange the following business day.
The Company is obliged to publish on its website and at the same time send various documents and information via the electronic stock exchange application. For example:
- audited annual report or audited financial statements within 6 months of the end of the financial year
- invitation to the general meeting
- minutes of the general meeting
- an amendment to the articles of association
- a change in the issue volume and shares
- information that may cause a significant change in the share price
This is not an exhaustive list. Detailed information is set out in the Start Market Rules.
As part of its activities, the Exchange organises Start Days, during which all companies on the Start Market report to investors and analysts. This can be face-to-face or online reporting and usually two Start Days are held per year. The calendar and schedule of Start Days is published on the Exchange's website.
The entry and annual fee is 30 000 CZK. In the first year of trading the annual fee is not payable. Detailed information is provided in the Fee Regulations.
It is possible to apply for a reduction of the annual fee to CZK 0 if the issuer undertakes by 30 November of the previous year to ensure the publication of an analytical report covering the issuer and its issued shares for the last closed financial year. The terms and conditions of the analytical report are set out in the Start Market Rules. In the event that the issuer fails to ensure compliance with this commitment, it shall be immediately liable to pay an annual fee of the full amount of CZK 30,000.
For Czech companies, there is a unique opportunity to obtain investment with state support. It is an IPO fund of the National Development Bank supporting small and medium-sized companies that issue their shares on the Start Market. It is a direct investment of up to 30% of the total capital raised, with a maximum limit of CZK 50 million. CZK. The process is very simple. Interested parties must first fill out an application or contact form on the IPO Fund's website, which provides complete information on the support offered. There are also stories of companies in which the IPO Fund has already invested.
There are no market capitalisation or liquidity requirements for the issues. Generally, the Exchange Commission will include in the index base all issues of shares admitted to trading on the Start Market.
See the PX Start Index Rules for details.
