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.
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