Regulated Market Segments: Prime Market

Prime Market is the most demanding market segment with regard to the requirements set before the issuer, especially in relation to transparency. Regular Market commits the issuer to submit only a minimum of information stipulated by the Capital Market Act while the Exchange Rules stipulate additional requirements applicable to the Official and the Prime Market (more: Rules and regulations).

Criteria for Prime Market listing

General terms

(art. 89. Exchange Rules)

  • The financial instrument being listed on the regulated market shall be those which may be traded in a fair, orderly and efficient manner;
  • The issuer shall be duly registered or otherwise validly established in accordance with the regulations of the Republic of Croatia or the country of the issuer's domicile,;
  • The applicant shall comply with the obligation to publish the prospectus and disclose other information, in accordance with the provisions of the CMA;
  • Financial instruments must be freely negotiable;
  • Efficient transaction settlement must be provided in respect of any financial instruments for which an application for listing on the regulated market has been submitted; that criterion will be deemed to be met if a financial instrument is issued in dematerialised form and entered in the central depository or central register and included in the clearing and/or settlement system;
  • The use of LEI is mandatory for issuers of financial instruments listed on regulated market
  • A pre-bankruptcy, bankruptcy or liquidation proceedings are not instituted against the issuer of a financial instrument.

Security types

Terms

Shares
  • General terms (art. 89. Exchange Rules)
  • The issuer must have an investor relations function in place (art. 96 Exchange Rules)
  • Free float min. 35% (art. 100. Exchange Rules)
  • At least 1000 shareholders (art. 100. Exchange Rules)
  • Market cap. min. EUR 65,000,000.00 (art. 101. Exchange Rules)
  • The issuer of shares shall enter into a market making contact with at least one market maker (art. 102. Exchange Rules)
  • The supervisory board of the issuer must have at least one independent member (art. 103. Exchange Rules)
  • At least one member of the audit committee shall be independent of the issuer (art. 104. Exchange Rules)
  • The audit report must not contain modifications of the auditor’s opinion (art. 105. Exchange Rules)
  • Total fees received by the statutory auditor or the audit firm from the issuer don't exceed the threshold set in Article 4(3) of Regulation (EU) No 537/2014 (art. 105. Exchange Rules)
  • The issuer of shares must not have imposed a market protection measure under the Exchange Rules for a period of 1 (one) year prior to the date of submission of the Prime Market listing application (art. 106. Exchange Rules)
  • The issuer shall develop and disclose to the public its dividend policy

Post-listing requirements on Prime market

Security types

Disclosure requirements

Shares
  • Management and Supervisory Board Meetings
  • Listing obligation for any new issues of shares
  • Information disclosure in both Croatian and English
  • Presentation of the Annual Report to interested financial analysts and representatives of the media
  • Calendar of Events
  • Information on the independent status of the supervisory board
  • Information on the independent status of the audit committee
  • Dividend Policy
  • The audit report must not contain modifications of the auditor’s opinion (qualified opinion, negative opinion or abstention from opinion)
  • the issuer shall disclose the outcome of the audit committee discussion of the threats to the independence of the statutory auditor or the audit firm or, where applicable, the group auditor and the safeguards applied to mitigate those threats and whether the audit engagement should be subject to an engagement quality control review by another statutory auditor or audit firm prior to the issuance of the audit report.
Official Market
Regular Market