Duna House IPO ends without result
Hungarian real estate broker Duna House on Friday announced that its initial public offering was without result, as it failed to sell the minimum number of 180,000 shares by the end of the IPO on Friday, following a suspension, Hungarian news agency MTI reported.
The National Bank of Hungary (MNB) suspended an initial public offering of Duna House Holding shares on November 13 at the request of the issuer.
Duna House and owner Medasev Holding requested the suspension of the IPO due to a bill submitted to lawmakers by the government that could affect rules on brokering credit, MTI reported in mid-November.
Brokering financial products is a "significant pillar" of Duna Houseʼs operations and changes to the regulations governing such activities "could influence the companyʼs performance in the business segment", Duna House said.
The bill, submitted to Parliament by the economy minister on November 17, would cap mortgage brokers’ commissions at 2%. Duna House launched the IPO November 16 and had planned to offer up to 1 million of its 3.06 mln shares at a maximum price of HUF 4,250. The IPO was set to run until Friday. Those who have invested in the Duna House IPO will be reimbursed by this coming Friday, Hungarian online daily vg.hu reported this morning.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.