Warsaw Stock Exchange: Life Science Index To Mark 3 Years Of NewConnect

• On 30 August 2010 NewConnect, the most dynamically growing international alternative equities market in Europe, will celebrate its 3rd anniversary.
• In Spring 2010 the WSE introduced the NewConnect Lead segment; two companies from NC Lead migrated to the WSE Main List since then.
• The WSE is launching the Life Science Index, incorporating medical and biotechnological companies listed on NewConnect.

Three years after its launch, NewConnect proved itself as the most dynamically growing international alternative trading platform in Europe. There are 155 companies listed on NC from Poland, the Czech Republic and Bulgaria representing over 10 industries, technology being one of the most widely represented of them. In such a short time NewConnect has become the second largest market in terms of the number of new listings among alternative equity trading platforms organised by 13 European exchanges and the fourth largest in terms of the number of listed companies. NewConnect took a high third position in terms of turnover ratio (turnover value against capitalisation) showing market liquidity.^*

In three years companies raised PLN560m on NewConnect, PLN500m of which in new issues. Average offering value was PLN3.5m and the average issuing cost was at 5.45 pct. WSE equity alternative platform supports also companies in migrating the WSE Main List. Since the introduction of NewConnect Lead segment in March 2010, two companies from that list already transferred to the WSE “Big Board”.

The success of NewConnect is the result, among others, of proper assumptions that were made at the design and implementation stages which have produced a market in-line with the expectations of entrepreneurs and Polish economic environment. It is also the effect of continuous promotional and educational effort which helped establish a wealth of Polish and foreign partners – advisers, investment firms, law firms – who realised that building NewConnect is also a good business for themselves.

NewConnect has been increasingly popular with investors, which is reflected in its fast-rising turnover value. In 1H 2010 (PLN1.3bn) it exceeded the total annual turnover value recorded for 2009 and was higher than trading recorded on the same number of smallest companies listed on the WSE regulated market.

NewConnect is a unique platform, largely because a considerable proportion of its listed companies rely heavily on intellectual capital and state-of-the-art technologies to run business and fuel growth. On 20 September 2010, the WSE will launch a new index, NC Life Science, incorporating companies from medicine and biotechnology sectors. The following issuers will be included among Life Science constituents:

1. BIOMAXIMA
2. EUROIMPLANT
3. MABION
4. PHARMENA
5. READ GENE

Establishing NC Life Sciences, an index representing companies successfully commercializing life science technologies, is a natural step in NewConnect development. NC Life Science index will not only put this group of issuers in the spotlight but it will also be an instrument increasing their clarity and supporting investors in their decision making.