What are the benefits of listing equities on the BSE?
Financing:
One of the primary advantages of listing on the BSE is the ease of financing by raising additional capital in the capital markets.
Media attention:
Listing on the BSE is accompanied by particularly significant attention from the local media, according to experience, in comparison with listing on other exchanges;
Liquidity:
In an international comparison, the BSE offers considerable market liquidity;
Heightened consumer awareness and confidence:
Presence on the BSE improves consumer awareness and confidence and improves company marketability and recognition;
Visibility:
Listing on the BSE ensures greater visibility in comparison with listing on larger foreign stock markets;
Index membership and the associated additional demand for equity:
A company that might be considered mid-cap at best on a foreign market could be considered a leading equity on the BSE, and as such would likely be included in the BUX, the BSE’s main equity index. This is in contrast to listing on a foreign market, where the conditions for inclusion in a main index usually cannot be fulfilled. Considering that domestic institutional investors typically invest pooled funds into a portfolio with the same weighting as the BUX index, this undoubtedly creates additional demand for the shares of the company;
High ratio of foreign investors:
Foreign investors have a strong presence on the Hungarian stock market, representing about 70-80% of the BSE’s equity capitalisation and its turnover. Foreigners can therefore trade shares on the BSE as easily as on any other large foreign market;
Allowances in equity listing fees:
The BSE waives all listing fees in case of equity listings. As an additional incentive, the BSE also waives listing maintenance fees in the quarter when the equity listing takes place and in the quarter that follows.