Date: 03.09.2012
BSE to introduce new equity market category
(Budapest) The Budapest Stock Exchange has decided to introduce a new equity market category
called "Equities Category T". The new category will be available from 3 September 2012.
Increasing demand by market players for new, better structured and transparent market
segmentation at the stock exchange was a major factor in the BSE's decision to introduce the new
category.
"We feel it is important to draw a clearer distinction between companies that go public by
combining the listing with a public transaction and those that are not involved in a public
transaction and whose listing is simply a ‘technical listing’. In this way, we would also like to
draw investors' attention to the difference between the risks associated with listings combined
with public transactions and listings without them," said Zsolt Katona, CEO of the BSE.
By launching this new category, the BSE also hopes to promote the option of technical
listing, the simplest form of entering a regulated market, to companies considering going public.
"From Category "T", it is easier to move up to a higher category later if the company carries out a
public transaction. We are convinced that this change will enhance the prestige of Categories "B"
and "A" and improve the market assessment of public transactions as we are certain that sooner or
later each and every company will target these higher, premium categories," Katona added.
The change will also affect some equity issuers already listed on the BSE's equity market as
some Category "B" companies may, with time, be moved to Category "T". "It was also central to our
decision that companies that went public in the past through technical listing and are currently
included in Category "B", but have no history of public transactions will have plenty of time to
prepare. They will be granted a one-year grace period to carry out a public transaction to stay in
Category B," explained the CEO of the BSE.
Further information:
Attila Varga-Balázs
Phone: +36 1 429 6855
E-mail:
vargab@bse.hu