- EBRD extends equity research programme to the Czech Republic
- Programme supported by TaiwanBusiness - EBRD Technical Cooperation Fund
- Listed-sme.com now covers 21 mid-sized companies in 10 countries
The Czech Republic has joined a number of countries that are covered by the European Bank for Reconstruction and Development (EBRD)’s innovative equity research programme for outstanding central European small and medium-sized enterprises (SMEs).
The programme, known as the EBRD Research Coverage Programme, is supported by the TaiwanBusiness - EBRD Technical Cooperation Fund and provides free equity analysis on a dedicated research hub: www.listed-sme.com.
The first Czech company to participate in the programme is the beverage manufacturer Kofola ČeskoSlovensko, which is listed on the Prague Stock Exchange. The newly-published analyst report was provided by WOOD & Company, an investment bank specialising in emerging markets..
Alex Pivovarsky, EBRD’s Director of Capital and Financial Markets Development, said: “When a medium-sized company lists its shares on a stock exchange, we would expect it to attract new capital to support its growth and development. At the same time, investors need independent analysis of the company to make more informed decisions about their investment. Many SMEs lack regular research coverage, even though it could bring very good returns. Thanks to the Listed SME Research Hub, potential investors around the world can read external opinions about the performance of a number of SMEs. We hope this platform will contribute to the development of the equity investment culture in the economies where we invest and encourage further initial public offerings over time.”
The EBRD Research Coverage Programme was launched in central Europe in 2019. Currently, it provides equity research coverage of 21 selected companies listed on the stock exchanges in Bulgaria, Croatia, Estonia, Latvia, Lithuania, North Macedonia, Romania, Serbia and Slovenia, and now also the Czech Republic.
Petr Koblic, CEO of the Prague Stock Exchange, said: “It is great that we can involve our companies in the Research Coverage Programme. Transparency is crucial for liquidity and I firmly believe that offering a wider range of research to individual firms will have a positive impact on their liquidity. Another added value is the fact that the research is available completely free of charge to any investor or prospective investor in a particular company. The availability of quality information for informed investment decisions is therefore increased.”
The EBRD resumed investment in the Czech Republic after the Bank’s Board of Directors approved a request by its government to help with recovery from the coronavirus pandemic in 2021. The re-engagement is temporary, and will be limited in scope and focus on the private sector. Supporting local SMEs to access finance through the development of local capital markets is a key priority area of that re-engagement.