Govʼt launches HUF 20 bln fund to support bourse listings
Image courtesy of Budapest Stock Exchange (BÉT)
Hungaryʼs government launched a HUF 20 billion fund to support listings on the Budapest Stock Exchange (BÉT) at a meeting of mid-sized companies organized by the bourse on Wednesday.
Companies that want to float their shares can tap the fund for the next 15 years to support preparations for listings, said Balázs Rákossy, minister of state responsible for the utilization of EU funds at the Ministry for National Economy.
The government is also launching a HUF 1.4 bln mentoring program for SMEs that might be a good fit for the bourse, Rákossy revealed. Between 50 and 70 firms could participate in the program, which is supported with HUF 1 bln in European Union funding, he added.
National Bank of Hungary (MNB) Governor György Matolcsy said more should be done to list state-owned companies as well as big companies that are still privately owned. He said Hungary should consider the example of Poland, where all of the countryʼs big banks are listed, and where their presence on the bourse "is practically mandatory," he added.
The Budapest Stock Exchange is majority owned by Hungaryʼs central bank.
Also on Wednesday, the bourse launched a multilateral trading platform for SMEs, dubbed Xtend, which is "calibrated to the needs of medium-sized businesses and designed to promote their growth," according to CEO Richárd Végh.
Companies on the market will enjoy lower costs and less administration than on the stock exchangeʼs main market, Végh explained, adding that the platform allows companies to draw in capital in private placements as well as public offerings.
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