News: Croatian companies part of the EBRD’s regional research programme

05/20/2020 14:01
Programme aims to increase the public availability of equity research of listed small and medium-sized enterprises (SMEs)

A total of 4 companies listed on the Zagreb Stock Exchange (ZSE) were selected to participate in the European Bank for Reconstruction and Development (EBRD) Research Coverage Program.
An initiative launched by the EBRD and funded by the TaiwanBusiness EBRD Cooperation Fund, aims to increase the public availability of equity research of listed small and medium-sized enterprises (SMEs) and address the information gap in coverage for under-researched listed companies.
The ZSE listed companies that will be a part of the Programme are AD Plastik (ZSE: ADPL), Arena Hospitality Group (ZSE: ARNT), Ilirija (ZSE: ILRA) and Zagreb Stock Exchange (ZSE: ZB). The companies considered for the Programme met the SME growth market issuers criteria as stipulated in MiFID II. Additional selection conditions included regular reporting in English, sizable free float and not having established research coverage. The finally selected companies entered into MoUs with the partner exchanges.
The 2-year Programme supports equity research coverage of 20 companies listed on the exchanges in Bulgaria, Croatia, North Macedonia, Romania, Serbia and Slovenia. The research reports will be available free of charge on the dedicated dissemination hub established for publishing and distributing equity research reports: WOOD&Co has been selected as the independent consultant responsible for the research coverage programme. The reports will be publicly available free of charge on the newly created Listed SME Research Hub. Four reports were published at the launch of the programme today, with the remainder to follow in the months ahead. At least five reports per company will be produced during the project period.
The Programme is fully aligned with the objectives of the Capital Markets Union Action Plan on Building a Capital Markets Union, published by the European Commission, which specifically mentions improving access to finance, including risk capital, notably for SMEs as one of the five priority areas for development.
This research coverage represents a logical next step in the development of the SEE LINK area of operations. The lack of information about the companies is often the main obstacle for making investment decision. Zagreb Stock Exchange welcomes this great initiative and we are extremely pleased that Croatian stocks will also be part of this programme – some of them, including ZSE stock itself, will have a research coverage for the first time. There is a significant gap in research coverage of SMEs and we are confident that this programme will make it easier for investors to make investment decisions and focus on the potential of this region. The EBRD's support in addressing this important issue is very important to us and we are thankful to EBRD for supporting the development of the regional capital market once again, said Ivana Gazic, ZSE’s President of the Management Board.