NewConnect is a stock market organized by the Warsaw Stock Exchange. Unlike the very formalized regulated market, where the stocks of the companies listed on the Warsaw Stock Exchange are traded, NewConnect is described as an alternative trading system, which is much more user friendly. The first session took place on 30 August 2007. Currently, more than 120 companies are listed in NewConnect.
The market is devoted both for newly established firms (so-called start-up businesses) and for those who are already present on the market. Unlike the regulated market, the candidates for NewConnect are not required to present documented history or capitalization (total market value of all stocks) at a level of at least EUR 10,000,000. The capital that NewConnect firms (Issuers) can apply for start at several hundred thousand, and end at several million zlotys.
From the very beginning, the NewConnect market was directed at the issuers from the so-called new technology industries: IT, Electronic Media, Telecommunications, Biotechnology, Environmental Protection, Alternative Energy, Modern Services.
It should be emphasized that the notion of modernity should not be limited solely to production technologies. Modernity and innovativeness may also refer to organizational solutions, manners of distribution of goods and services, improvement of quality and staff management systems, as well as many other aspects of company management. This means that the NewConnect market is open to all those who think about rapid development of their firm on the basis of the capital provided by Investors.
The main advantages of the NewConnect market for the issuers are lower costs of preparation of the IPO and of functioning, in comparison with the regulated Warsaw Stock Exchange market. It is not necessary to prepare a prospectus, only an informational document which is approved by the Polish Financial Supervision Commission, which largely accelerates the floatation procedure. Only the annual statements must be audited and companies may select the domestic accounting standards.