Listing on the Czech Stock Exchange

With a history that starts in 1871, the Prague Stock Exchange or PSE as it is known is the main stock exchange of the Czech Republic and one of the oldest in Central Europe, and of high importance in terms of securities market. According to the law, the Prague Stock Exchange is a joint stock company. The Exchange Chamber of PSE in Czech Republic trades on the market with the help of the licensed traders. Foreigners looking to list their companies on the Prague Stock Exchange should seek legal advice from our Czech lawyers. The same team is at your service if you want to start a business from scratch.

 How can I list my company on PSE?

An initial public offering (IPO) is the first step in listing the company on the Prague Stock Exchange. The company’s shares are then available on PSE and at the disposal of foreign investors interested in this direction. Usually, an investment bank has enough experience to trade the shares of a company listed on the stock exchange. Here are a few listing requirements for companies interested in accessing the Prague Stock Exchange:

• • the Czech National Bank supervises the capital market and approves prospectuses, while the PSE Exchange Chamber governs the exchange;
• • XETRA is the German-based trading system applicable in the Czech Stock Exchange;
• • the price of the shares is established with the investment bank the company works with;
• • every negotiable instrument is kept on an order book and then fixed by the time of entry on the market and by price.

There are several financial tools involved in a stock exchange listing a licensed broker can explain. Also, legal support when listing on the Czech Stock Exchange is definitely necessary for foreign investors who can get in touch with our attorneys in Czech Republic.

What you need to know about XETRA the trading system

XETRA is an automated trading system operated by the German Exchange and driven by quotations. Among the principles of XETRA, we mention that the minimum tradable unit needs to be equivalent to one security part. It is good to know that trading is made anonymously as the dealers involved do not know who their counterparties are. Foreign investors need to understand that each issue of stocks operated on the Czech Stock Exchange enters into one of the three stock exchange markets available at the time of the entry. On the other hand, specific markets can fluctuate among themselves, but a broker or the investment bank the company works with may inform about the obligations in this sense.

Please feel free to contact our Czech law firm and find out more about the listing on the Czech Stock Exchange.