List rearrangement planned on OMX Baltic Market

02.05.2007 VLN

Baltic Main list. New admission and listing criteria for Baltic Main list will be introduced in all three Baltic exchanges. Baltic Main list issuers will have to meet one of the following criteria: at least 25% of shares (the current criteria) or shares worth EUR 25million must be distributed in public hands (free float shares). Compliance of issuers with above-mentioned criteria will be assessed on regular basis in order to guarantee investors with constant access to high-quality investment opportunities.

The new requirement is a step towards higher liquidity on the Baltic Main list and will benefit the companies that wish to attract higher interest from investors. This initiative was supported during consultations with investment specialists who revealed that free float value starting from EUR 20-25 million is necessary for realization of high quality investments and attraction of foreign institutional investors. The new requirements will also enable better peer comparisons of companies on Baltic Main list with companies on Nordic list.

For the first time the compliance of issuers on the Baltic Main list with the new liquidity requirements will be evaluated in November 2007. Companies that will not be able to meet the requirements will be given 6 months transition period. In case of compliance after the period, when all listing conditions are met, companies will stay on the Baltic Main list. In case companies will not comply with the requirements after transition period they will be transferred to the Baltic Secondary list.

I-list and Free list. List rearrangement project will affect companies on the current I-list and Free list by joining the lists and trading these companies together on the same list – Baltic Secondary list. This move will reduce existing fragmentation of the lists in the Baltic market and will offer investors clearer list structure.

Currently in many occasions the differences between companies on various lists in Baltic market are marginal or even non-existent. After list rearrangement companies on Baltic Secondary list will have no free float requirements (as opposed to 15% or 25% requirement for I-list companies now) but will have the same information disclosure requirements that are applicable to I-list currently.

One of the reasons behind list rearrangement is introduction of alternative marketplace First North in Baltic countries. Fist North will operate parallel to the regulated market but with requirements that are easier to fulfill.

After the list rearrangement and introduction of alternative marketplace the Baltic market structure will consist of the following segments:

• Regulated market with two lists (Baltic Main list and Baltic Secondary list) instead of three lists currently;
• Alternative market First North.

Currently the new market rules are reviewed by financial supervisory authorities in all three countries. More detailed information on list rearrangement will be available after the new rules will be approved.