The London Stock Exchange – a natural direction for Polish companies planning a dual listing

6 September 2023 | Knowledge, News

THE SERIES | DUAL-LISTING – A WORTHWHILE DIRECTION TO TAKE

From the perspective of a Polish company, dual listing means simultaneous presence on both the Warsaw Stock Exchange and a foreign exchange. With dual listing, additional capital can be raised from international investors and serve to boost the price of shares listed on the Polish stock exchange.

Advantages of dual listing

The listing of a company on a foreign stock exchange, in particular on the London Stock Exchange, opens the door to its wider recognition on international markets, providing access to the most active investors and financial institutions. This can lead to an increase in liquidity, which in turn allows the company to significantly expand its existing business.

Increased liquidity means not only an increase in the capital available to the company, but also more intensive trading in its shares. Being present on two stock exchanges at the same time means that more purchase and sale transactions in the company’s shares can be made during each trading session than would be possible on a single trading floor.

Conducting a dual listing requires adequate preparation and involves experienced advisers. It also entails costs, which, however, should pay off several times over once the company has entered the foreign market.

Pre-IPO

Companies that are thinking of listing abroad are not always completely ready, for example due to insufficient capitalisation and weak financial buoyancy. Some therefore may need to raise capital outside the stock market from individual investors, which is referred to as pre-IPO. Obtaining external financing may not however be as difficult as expected, as a company’s planned dual listing can make it more attractive in the eyes of investors.

The two stages are closely linked, i.e. the pre-IPO enables the subsequent dual listing.

The London Stock Exchange – an attractive trading floor for Polish companies planning a dual listing

The advantages of listing abroad cannot be overestimated. Returns depend on a number of factors, with the most important being the choice of stock exchange.

Given the amount of capital available, the London Stock Exchange (LSE) seems a natural choice.

Companies listed on the LSE meet high standards of corporate governance and transparent communication of information, which are strongly sought after by international investors.

As far as Polish companies are concerned, it is important to remember that there are also other proven ways to raise capital, both European and non-European.

How do we help

We have been advising Clients on dual listings for many years. We pioneered this type of venture on the Polish market, with WorkService SA being the first Polish company to list on the LSE and paving the way for others.

Nowadays, at a time when the Polish stock market does not always provide sufficient liquidity, it is worth seriously considering listing on a foreign exchange.

Questions? Contact the author

Paweł Mardas

Latest Knowledge

Act Amending the Labour Code or Poland’s response to the Equal Pay Directive

On 3 April 2025, a new draft Act Amending the Labour Code appeared on the website of the Sejm. Prepared by the Extraordinary Committee for Codification Amendments, it differs significantly from the original parliamentary draft implementing the Directive (print no. 934), the first reading of which took place on 6 February 2025. On 9 May 2025, the Sejm adopted the bill without amendments.

How a family foundation can protect itself from ‘black sheep’

Every family may unfortunately have members who can be confrontational, aggressive and uncooperative, who are in addition convinced that they are always right and that the world is always against them. They can create chaos and confusion, are a source of constant conflict or simply do not fit into the overall harmony. Sometimes we call them ‘black sheep’ because they cause difficult situations, place stress on relations or fail to meet expectations.

Key changes in tax scheme reporting (MDR)

The significant changes in the tax environment and the growing expectations for fiscal transparency have prompted the legislature to streamline the existing provisions on the system for reporting tax schemes (MDR), thereby eliminating some procedural ambiguities. According to ministerial announcements, the main aim of the amendments is to improve the readability, clarity and consistency of the reporting system and more closely align it with that in force in the wider EU.

Amendments to the General Tax Code

The Polish tax system could be in for a revolution. The Ministry of Finance has announced draft changes aimed at simplifying, streamlining and, in some areas, tightening the rules for dealing with the tax authorities.