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Friday, April 28, 2017 
Market Status: OPEN
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Frequently Asked Questions



Why should a company list on the Bucharest Stock Exchange?

Bucharest Stock Exchange is building a competitive capital market in Central Eastern Europe, providing an opportunity for companies looking to raise funds on the Romanian capital market in a dynamic and transparent environment. BVB has recently witnessed an increasing flow of capital coming from retail and institutional investors, both national and international.

The most important advantage of getting listed is attracting financing. Other benefits of coming to the stock exchange are:

  • building reputation and credibility
  • establishing the market value of a company
  • easing the exit for the existing shareholders
  • access to cheaper capital on an ongoing basis.
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What is the difference between the Regulated Market (RM) and AeRO?

The two markets mainly differ in the requirements for the listing process and post-listing obligations.

For the Regulated Market, a company has to:

  • be a joint stock company,
  • have an anticipated market capitalization of at least EUR 1 mn (or, if this is not available, it is taken into consideration the company’s shareholders’ equity from the last financial year which must be at least EUR 1 mn
  • have a free-float of at least 25% (shares not owned by the company, nor by strategic investors)
  • have a history from at least the past 3 years.

For more information about the RM, please consult our specific guide.

For younger companies, which do not fulfill the criteria to be listed on the regulated market, AeRO was created. In order to be listed on AeRO, the company will need to have an estimated capitalization of at least EUR 250,000, estimated either through a previous private placement, an Initial Public Offer (IPO) or based on the trading history on another trading platform. In the absence thereto, the early capitalization will be estimated on the basis of an assessment made by the Authorized Advisor. Other criteria that will be taken into account are: a free float, shares available for trading, of at least 10% or have 30 or more shareholders. For more information about AeRO, please consult our specific guide.

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What are the criteria that a company needs to fulfil in order to get listed on the RM?

There are 4 criteria that your company needs to fulfill prior to listing on BVB:

  • be a joint stock company (SA)
  • have the value of anticipated capitalization / shareholders’ equity of at least EUR 1 mn
  • have a free-float of at least 25%
  • be in function for the last 3 years and have audited financial reports for the last 3 years
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What are the steps to list a company on the RM?

The steps prior to the first trade can be identified as following:

  • Transformation into a joint-stock company (if needed); the company’s Articles of Association should not include any restriction regarding the transferability of the shares
  • Resolution of the shareholders regarding the public offering and/or admission to trading on the Regulated Market
  • Selection of a licensed intermediary that is also a member of the BVB trading system
  • Preparation of the Prospectus that has to be approved by the Financial Supervisory Authority (FSA)
  • Contact BVB to obtain the preliminary approval for admission, based on the draft Prospectus
  • Public offering process (if needed)
  • Registration of the securities to the FSA
  • Admission of securities to trading on the Regulated Marked based on the BVB Board of Governors resolution
  • Registration of the securities at the Central Depository
  • First day of trading.
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How is the price of the shares established in the public offering?

Before the launch of a public offering, intermediaries managing the public offer will run a roadshow. During such roadshow, they will present the company to potential investors who will provide feedback regarding the price that they would be willing to pay to acquire shares in the respective company.

Based on the investors’ feedback, together with the owners of the company, the intermediaries will establish a final price or a minimum and maximum prices for the shares at which the offering will be launched. If the offering will be launched with an interval of a minimum and a maximum prices, at the end the final price will be established on the base of the orders placed by the investors.

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After the listing, can the price of the shares drop?

Yes, after the listing, the price can rise or drop, influenced by many factors. Some of the determinant factors are: the final price at which the shares were sold during the public offering, the way the business of the company develops, the company’s transparency, supply and demand for the shares of the company, the economic and political situation on the international and national levels in the given period.

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What should a company do after the listing?

After the listing, a company should stay in regular contact with its shareholders. It is also crucial to maintain good investor relations and comply with mandatory reporting requirements to the Financial Supervisory Authority and to the Bucharest Stock Exchange. Find more about post-listing recommendations.

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How much does it cost to get listed?

Fees charged by the BVB include the fee for processing of the listing application and admission to trading (both paid at once) and the fee for maintenance to trading (paid on an annual basis).

To see more details, please consult the dedicated page of our website.

There may be other costs related to the listing, charged by third parties, such as the Financial Supervisory Authority, Central Depository, intermediary, advisors or auditors.

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How long does the listing process take?

The process of preparing a company to the listing and the actual admission to trading may take between 3 to 12 months. The length of the process depends mainly on how prepared a company was prior to the admission to trading process. The size of the company, public offering structure and its value are also relevant.

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Whom may I contact for additional information?

The BVB team, dedicated to the admission to trading of companies can be contacted at listing@bvb.ro. The authorized intermediaries can also provide additional details. You can see the list or the list of the recent IPOs that took place on the Regulated Market.

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