[Last updated: 1 January 2024, unless otherwise noted]
There are two main segments of the PSE:
- The EU-regulated market segment with highest transparency requirements, consisting of the Prime Market and the Standard Market.
- The exchange-regulated market segment, consisting of the Free Market and the Start Market, with a lower level of transparency.
With respect to all segments, there are no particular financial requirements in terms of profits, revenues or cash flows to be met in order to obtain a listing. There is no minimum market capitalization for companies applying for admission to the EU-regulated market (the Prime Market or the Standard Market); however, if such companies wish to be listed on the Prime Market or Standard Market operated as "official markets" (that is, not "regulated markets"), they must fulfil certain stricter statutory conditions. Such conditions include that the market capitalization of their shares must amount to a sum in Czech crowns equivalent to at least €1 million (approx. US$1.11 million).
There is no requirement specifically to appoint a sponsor or a broker for the listing. However, it is market practice for the issuer to appoint a broker and a law firm experienced in capital markets law in connection with its listing.
There are no ongoing financial requirements that must be met by the issuer in order to maintain a listing on the exchange.
There are only very few differences in listing requirements between foreign and domestic companies and there are no jurisdictions of incorporation or industries that would not be acceptable for a listed company.
[Last updated: 1 January 2024, unless otherwise noted]
Prospectus. A listing on the Prime Market or the Standard Market requires a prospectus agreed by the local regulatory authority, the Czech National Bank, or in case of issuers from another EEA member state, the competent authority in their home member state.
Free float; distribution. If a company applies for a listing on the Prime Market or the Standard Market operated as "official markets", more stringent statutory rules apply, including that such company must distribute a minimum free-float of 25% of the class of its shares to be listed to the public in one or more EEA states. There is no requirement for listed companies to have or maintain a specific minimum number of security holders or to have or maintain a minimum trading price for their securities.
Accounting standards. For a company incorporated in an EEA member state, the accounts must generally be prepared under IFRS. For a company incorporated outside the EEA, the accounts should be prepared either under IFRS or a national GAAP that is deemed equivalent by the European Commission (for example, US, Japanese, Chinese, Canadian or South Korean GAAP).
Financial statements. In the case of the Prime Market and the Standard Market, the applicant must submit audited annual financial statements for the last three business years with the corresponding auditor certificates.
[Last updated: 1 January 2024, unless otherwise noted]
The formal review period according to the Rules of the PSE is 10-15 days, depending on the specific market, and obtaining the formal approval is very quick, as the whole set of all necessary documents is usually agreed with the PSE in advance. However, listing cannot occur until the shares to be listed have been validly issued and the prospectus has been approved. The following is a typical process and timetable for a listing of a foreign company on the PSE in the Prime Market or the Standard Market.
[Last updated: 1 January 2024, unless otherwise noted]
There are no corporate governance requirements that a company must meet in order to qualify to list its securities on the PSE. The only relevant obligation is that the issuer applying to list its shares on the Prime Market or the Standard Market must submit any codes of corporate control and management, which are mandatory or voluntarily complied with by the issuer.
However, a foreign issuer’s legal status must comply with the legal framework of the country where the issuer has its registered office (a fact that must also be declared by the issuer in its application for admission).
Companies listed on the Prime Market or the Standard Market are subject to a number of continuing reporting obligations. They include the obligation to publish notices of general meetings and certain related information, dividend distributions, or the issuance of new shares.
After being listed on the PSE, the company’s securities become subject to the prohibitions on insider dealing and market manipulation. These prohibitions apply in the regulated market, which is to the Prime Market and to the Standard Market.
Any market manipulation, meaning any conduct by a person that might distort capital market participants' view on the value of, supply of or demand for a financial instrument, or that might otherwise distort the price of a financial instrument, is also expressly prohibited under Czech law.
[Last updated: 1 January 2024, unless otherwise noted]
In general, the fees are rather low. A company seeking to list on the the Free Market must pay an admission fee of CZK10,000 (approx. US$447), on the Start Market the company must pay an admission fee of CZK30,000 (approx. US$1,341). There are very low annual fees for companies listed on the Free Market - CZK10,000 (approx. US$447). On the Start Market, there is no annual fee if the company meets the specified conditions, otherwise the annual fee is CZK30,000 (approx. US$1,341 / US$0). A company seeking to list on the Standard Market or the Free Market must pay no admission fee, but annual fees do apply. In the case of the Standard Market, the annual fee amounts to CZK10,000 (approx. US$447), and in case of the Prime Market, the annual fee amounts to 0.05% of issue market capitalization (max. CZK300,000 (approx. US$13,410)). Additional fees apply to a prospectus review by the CNB and to third party services (such as lawyers, accountants, banks and trading members).