At least 11 of the 112 firms listed on NewConnect, the Warsaw Stock Exchange’s alternative trading platform, plan to transfer to the main market this year. They seek increased liquidity, new investors and higher prestige, but listing on the WSE requires a difficult transition.

Paweł Wielgus, expert at the Association for Individual Investors (SII), warned that only two firms – MW Trade and Centrum Klima – have so far made the move. One problem, he noted, is that many NewConnect constituents are run like family firms and implementing the transparency required of WSE companies can be tough.

“[Firms] transferring to the main exchange should already meet the most restrictive rules of corporate information and good practices,” he warned.

One firm eying the WSE this year is investment advisory Powszechne Towarzystwo Inwestycyjne (PTI). “We want to increase liquidity and be better perceived by the market,” said managing director Mariusz Staszak. “Due to the greater transparency required at the WSE, we will be more open for potential investors and credit-granting institutions.”

Financial companies Fast Finance and Pragma Inkaso have already submitted issue prospectuses to the Polish Financial Supervision Authority, while Quercus TFI and Wrocławski Dom Maklerski are planning a move.

The minimum capitalization required of WSE companies is €10 million. Krynicki Recykling, currently working on its issue prospectus, is planning to pass this threshold thanks to a public offer before summer. It would then debut on the WSE by August.

“The most important reason [for the move] is the possibility of gaining access to a large group of new investors,” company chairman Adam Krynicki explained.

Whether or not these 11 firms succeed in moving to the WSE, others will undoubtedly consider the move in the future. According to Parkiet, 22 NewConnect firms have a market cap of over €10 million.