Company Mentzen S.A., marked with the ticker XDD, debuted on the NewConnect market (the small companies market of the Warsaw Stock Exchange – WSE) July 2. The debut can be considered successful, because the share price increased and eventually gained 59.42 percent to PLN 57.39. The following days brought further increases, up to PLN 71.94 – it says bankier.pl. However, the situation has changed. On Monday's session, only PLN 36.70 was paid per share. It should be mentioned, however, that the WSE recently saw a strong depreciation of shares, The largest European and Asian stock exchanges also experienced “red Monday”.
Sławomir Mentzen's blunder. “These regulations make no sense”
The Mentzen S.A. company is controlled by the Confederation politician Sławomir Mentzen. According to the announcements, the MP took advantage of the declines. On July 25, he bought 1,650 shares at an average I appreciate 46.67127879 PLN, and on July 26 he bought 50 shares at an average price of PLN 45.3744, and on July 30 100 shares at an average price of PLN 44.8968 – calculates bankier.pl. However, the Confederation politician has already informed about another such transaction on the social platform X. “I placed a large order to buy #XDD at PLN 34. I think that despite this stock market crash around the world it will not fall lower” – wrote Sławomir Mentzen.
But then the post disappeared and another one appeared. “Lawyers told me to delete the tweet, so I did. These regulations make no sense,” wrote the Confederation politician.
The problem is that “in accordance with the regulations, persons discharging managerial responsibilities and persons closely associated with them must notify the issuer and the supervisory authority of each transaction once the threshold of EUR 5,000 is reached.” The Association of Stock Exchange Issuers (SEG) reportsthat the notification is made using the form annexed to Implementing Regulation (EC) No 2016/523.
SEG: Notification is a measure to prevent abuse
“In the case of a notification addressed to the KNF, the electronic form available on the KNF website is used for sending it, in accordance with the ESPI Regulation. In the case of a notification addressed to the issuer, the only requirement is to use electronic means,” we read. SEG emphasizes that “notification of insider transactions is a measure to prevent market abuse, especially the use of information confidential. Publication information These transactions can also be a valuable source of information for investors, but also an additional means of market supervision by competent authorities.”