The Budapest Stock Exchange (BSE) is the official trading venue for publicly offered securities. It is a key institution of the Hungarian financial market that provides an opportunity for various Hungarian legal entities to raise capital and offers various investment opportunities.
Foreign investors can trade shares on the BSE as easily as on any other large foreign market. Also, the BSE has a high ratio of foreign investors. If you want to list your company on the Hungarian Stock Exchange, our lawyers in Hungary can help you with detailed information.
Stock Exchange listing procedure in Hungary
There are two types of equity listing in Hungary and companies may choose one or the other depending on their future plans for the company.
Simple listing on the Hungarian Exchange does not include a capital increase. Companies may choose this option when they are not in need of additional capital at the time of the listing. This type of simple listing allows the company to assess its performance on public markets.
A traditional listing on the Hungarian Stock Exchange is performed when the company offers a share package to the public: the issue of new shares or sale by owners.
The decision to list a company on the Bulgarian Stock Exchange consists of several steps and going public represents a challenge for the company. Our lawyers in Hungary can offer specialized counselling for listing on the stock exchange in Hungary. A Hungarian passport is one of the most sought-after passports in the world, providing visa-free travel to numerous countries, including the US, Canada, and most of Europe. Schedule a consultation with one of our immigration experts to learn if you qualify and when your current immigration status can be changed to Hungarian citizenship. They can guide you about different instances in which you can apply for citizenship in this country.
Conditions for listing on the Hungarian Stock Exchange
The criteria for listing on the Budapest Stock Exchange are established in order to observe the interest of the investors and to ensure a transparent trading. The following conditions are among those prescribed by the Exchange for companies entering the market:
– the issuer must accept the Exchange Rules;
– the securities to be listed are negotiable;
– the company must accept a statement by KELER Ltd. (The Central Clearing House and Depository) that specifies that the security is accepted;
– the name and address of the share registrar of the issuer must be submitted.
Before a company starts trading, it must publish the following data at the official site for publications of the Exchange:
– the statues of the company;
– the name and address of the Registrar of Shares;
– the ownership structure;
– the prospectus prepared for listing on the exchange.
There are three markets for listing equity shares in Hungary: the Prime Market, the Standard Market and the T Market.
For more information about the listing procedure, listing conditions and fees for listing on the Hungarian Stock Exchange, please contact our law firm in Hungary.