Guide to NASDAQ OMX Baltic Securities Market

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Guide to NASDAQ OMX Baltic Securities Market Guide to NASDAQ OMX Baltic Securities Market 1 2 Contents 4 NASDAQ OMX Baltic - unlocking value for listed companies and investors 6 Latest developments at NASDAQ OMX Baltic 8 An in-depth look at NASDAQ OMX Baltic 18 Baltic market – a safe place to invest 20 NASDAQ OMX First North - tailor-made to facilitate growth 22 Economic overview of the Baltic States 26 Taxation 29 IPO success against the odds 30 Baltic market trading statistics 31 Company list 70 Calculation of key indicators 71 Baltic Bond list 72 Baltic Secondary List companies 73 Secondary List TOP 30 74 List of members 75 Market data vendors 77 Contacts 3 NASDAQ OMX Baltic - unlocking value for listed companies and investors We are delighted to bring you the 2008 edition of the NASDAQ Over the past twelve months we have experienced a tougher OMX Baltic Guide, which will provide investors, companies and macro economic environment and a downturn in the global capital market participants with insight into the opportunities that the markets, which has naturally had an impact on the Baltic region. Baltic securities market has to offer. One of the main effects has been a slowdown in the number of new companies listing on the Baltic market. Nevertheless, we have The past year has been an eventful one for us. We are excited to a substantial pipeline of companies waiting to list on our main now be a part of the new NASDAQ OMX family, which is the market and our alternative market NASDAQ OMX First North world’s largest exchange company with trading, technology and once the investment climate improves. In the meantime, shrewd public company service capability spanning 6 continents. Being a investors may be able to pick up a number of quality stocks at very part of this larger family and one of the strongest brand names in favorable prices at NASDAQ OMX Baltic. the world opens up many key opportunities for the Baltic market, including enhanced global visibility for our listed companies, Finding innovative ways to enhance the products and services that greater interest from investors in the U.S. market, and enhanced we offer our customers and help them stay on top of changes in the trading possibilities. It also means that the Baltic market is operated quickly evolving financial sector is a top priority for us at NASDAQ according to the highest standards of trading, listing and client OMX Baltic. We have introduced a number of key improve- services, which NASDAQ OMX maintains in all its markets. ­­ments in our market over the past year to further enhance market Andrus Alber Daiga Auziņa-Melalksne Chairman of the NASDAQ OMX Tallinn Management Board Chairman of the NASDAQ OMX Riga Management Board 4 Welcome to NASDAQ OMX Baltic transparency, efficiency and security and enable best execution for investors. We believe that informed investors drive market success. In line with this, we would also like to highlight our continued efforts to provide potential investors with high quality informa- tion services as well as relevant data about companies listed on the NASDAQ OMX Baltic. The financial information for the listed companies in the Guide was prepared in partnership with the Vytautas Magnus University, Faculty of Economics and Manage- ment. We are confident that the Guide to the NASDAQ OMX Baltic securities market will further enlighten investors, companies and market participants on the solid value that the Baltic market has to offer. Make the Baltic market your market! Arminta Saladžienė Henrik Elfving Chairman of the NASDAQ OMX Vilnius Management Board NASDAQ OMX Vice President / Baltic market Welcome to NASDAQ OMX Baltic 5 Latest developments at NASDAQ OMX Baltic At the NASDAQ OMX Baltic securities market in Estonia, Latvia and Lithuania we strive to constantly improve the products and NASDAQ OMX Baltic fast facts: services that we offer our customers, enhancing the competitive- ness of our listed companies in the global market and improving • Listed companies raised additional capital at the amount market accessibility, efficiency, transparency and security for our of EUR 180.42 million on the NASDAQ OMX Baltic in investors. Below you can read about a number of improvements 2007. A further EUR 58.42 million was raised during the that we have recently implemented or are in the process of imple- first six months of 2008 alone menting. • A total of EUR 160.61 million was raised through IPOs at LAUncH of NASDAQ OMX FIRst NORTH the NASDAQ OMX Baltic since the beginning of 2007 IN THE Baltics completed • 1 new company listed. Number of companies on the The alternative market First North was launched in Latvia in June NASDAQ OMX Baltic amount to 97 and build total 2007, followed by Lithuania and Estonia in November 2007. The market capitalization of over EUR 10.90 billion pipeline is now filling up with potential issuers and as the market • 2 local members extended their operations across the situation improves they are expected to join this exciting new entire Baltic market by becoming Pan-Baltic members alternative marketplace tailor-made for growth. thus bringing the number of pan-Baltic members to 27 A DECREASE IN TRADING FEES • 3 new members joined the market and brought the In view of the rapidly increasing number of pan-Baltic trans- number of NASDAQ OMX Baltic members to 42 actions all three Baltic exchanges have harmonized the trading • 85 investment funds joined NASDAQ OMX Baltic Fund fee structure. From January 1, 2008 trading fees on the Baltic Center amounting to 258 investment funds exchanges were decreased by 10 to 40 percent depending on the • 18 corporate and mortgage bonds as well as 14 type of trade. government bonds were issued totaling to 41 and 25 ENHanced TRadinG maRKet model accordingly NASDAQ OMX Baltic enhanced its trading market model in compliance with the Markets in Financial Instruments Directive (MiFID) prior to November 1, 2007 which included pre-trading anonymity and a number of other changes to facilitate trading efficiency. of foreign end users and 40% increase in Baltic end users. These figures clearly demonstrate the necessity of good information NEW TRADING SURVEILLANCE SYSTEM products covering the Baltic securities markets. INTRODUCED fall 2007 The advanced surveillance system SMARTS was launched on the NASDAQ OMX Baltic MEMBERSHIP NASDAQ OMX Baltic in Estonia, Latvia and Lithuania in Novem- SUccess continUED IN 2008 ber 2007. SMARTS, shared with the NASDAQ OMX Nordic, opti- 13 members joined NASDAQ OMX Baltic or became pan-Baltic mizes the monitoring of trading in the Baltic region. members during 2007 and the first half of 2008, proving the concept of NASDAQ OMX Baltic membership as attractive offer- INTRODUCTION OF INVestment FUND TRADING ing. At the end of August 2008 there were 42 members at NASDAQ NASDAQ OMX Tallinn and Vilnius introduced a trading segment OMX Baltic in Estonia, Latvia and Lithuania. for investment fund units (UCIT funds) and NASDAQ OMX Riga improved its existing offering, now making it possible to offer a Implementation OF NEW TRADING SYSTEM harmonized product to all Baltic fund managers. The newly devel- In collaboration with the other NASDAQ OMX exchanges, the oped product is particularly suitable for closed-end fund units that Baltic stock exchanges started an initiative to implement the new need to ensure liquidity for fund unit holders. advanced trading system GENIUM combining INET, currently used by NASDAQ OMX in the US, and CLICK and SECUR, currently used GRowinG demand foR MARKet Data PRodUcts for derivatives trading and clearing at NASDAQ OMX Nordic. The Market Data products launched in January 2007 have facilitated new system, with a planned 2009 launch, will also be used at the trading on the exchanges, with a 50% increase in the number NASDAQ OMX Europe trading venue. 6 Latest DEVelopments CORPORate ACTIONS PROCEDURES sion by European market infrastructures on November 7, 2006. DESCRIBED IN PRACTICE GUIDE In order to fulfill price transparency requirements, the CSDs have The Latvian Central Depository and Estonian Central Securities published a tariff brochure and price examples on their websites, Depository published a common Corporate Actions Practice Guide thus assuring price transparency for all the market participants. for the Latvian and Estonian markets, in which all market partici- In order to comply with the second part of the Code (“Access and pants, investors and other stakeholders can find detailed informa- Interoperability”), the Baltic depositories offer market partici- tion on how specific Corporate Actions and Events are handled at pants the freedom to choose their preferred provider of serv- both depositories. The document also contains a detailed descrip- ices at each layer of the transaction chain (trading, clearing and tion of the procedures for General Meetings of shareholders as settlement). In the context of the implementation of “Service well as taxation related issues in Latvia and Estonia. This guide can Unbundling and Accounting Separation” of the Code of Conduct, be found on the NASDAQ OMX Baltic website as well as on the all ECSDA members (being signatories of the Code) have agreed websites of both central securities depositories (CSDs). on a common understanding of the services which have to be unbundled according to the Code of Conduct. This understanding InfoRmation ON CORPORate ACTIONS is reflected in a common ECSDA Glossary. foR CROSS-BORDER SECURITIES On January 1, 2008 the Baltic CSDs introduced the exchange of ISO New CSD stRateGY, inclUdinG cleaRinG and 15022 based information on Corporate Actions and Events taking settlement IT platfoRM CHanGE in Estonian place in each of the CSDs. This is a move that demonstrates how AND LatVIAN CSDs the Baltic CSDs are advancing the development of common post- Following the work on the Baltic clearing and settlement strategy, trading services in the Baltics.
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