The BSE Xtend market continues to expand

Source: bet.hu, February 11, 2022

The ceremonial opening bell at the Budapest Stock Exchange marked the listing of ÉPDUFERR. The company’s stock market debut was preceded by a purposeful development process, during which the BSE provided a number of services to support the company’s listing and its public operations.  

Source: bet.hu, February 11, 2022

Following a symbolic bell ringing, ÉPDUFERR’s shares debuted on the Budapest Stock Exchange’s Xtend market, designed for mid-sized companies. The bell ceremony was attended by Richárd Végh, CEO of the BSE, Milán Palkovics, Chairman of ÉPDUFERR’s Board, Zoltán Jutasi, CEO of Navigator Investments Ltd., as the Designated Advisor, and Dénes Jobbágy, CEO of Széchenyi Funds, the lead investor.

In late 2021, 50 million common shares of the company were registered on the BSE’s Xtend platform. Following this, the company successfully carried out a private capital increase, raising nearly HUF 1 billion. During the capital increase, 19,891,078 new common shares with a nominal value of HUF 10 each were issued.

Founded in 2004, the domestically owned ÉPDUFERR has become a significant player in the construction industry in Dunaújváros and the surrounding area, thanks to its extensive expertise and well-thought-out business strategy. The company carries out general contracting and main contracting activities, and also deals in building materials, steel trading, and steel processing. The company’s future plans are focused on international market expansion, where its stock market listing is expected to play a significant role.

The company took a systematic approach to its listing on the BSE Xtend market, making use of the BSE’s wide range of services designed for mid-sized companies. To support its market presence, ÉPDUFERR successfully applied for support through the Mentor Program, which helps finance stock market listings and provides advisory services. In 2021, the company was featured in the BSE50 publication, showcasing successful Hungarian mid-sized companies, and later participated in the BSE’s exclusive capital market event, BSE Xmatch, presenting to investors.

Milán Palkovics, Chairman of ÉPDUFERR’s Board, commented on the listing: “The BSE’s creation of the Xtend category provided a great opportunity for companies like ÉPDUFERR. With the Xtend listing, ÉPDUFERR gained quick access to the BSE’s new market, enjoying its useful advantages. One of the key advantages of our stock market presence is that, compared to market conditions, it helps our company secure funding under better terms, and also, the transparency required by our current and potential clients due to our market presence could give us a competitive edge, especially with multinational and large corporate partners. Last December, we successfully completed a capital increase of nearly HUF 1 billion, which will help us diversify our operations, ensuring more stability for our business in the long term by launching new business lines. Our short-term plans include seeking additional funding and aiming for a transition to the Standard category. We would like to express our gratitude to the Budapest Stock Exchange for their support in our listing on the BSE Xtend market and to Széchenyi Funds for their participation in the private capital increase.”

Richárd Végh, CEO of the Budapest Stock Exchange, added: “With ÉPDUFERR, we once again welcome a company to the BSE Xtend platform that has followed the path outlined by the BSE, utilizing several initiatives from our mid-sized company service portfolio to carry out their stock market debut. This is not only a great feedback for us regarding the effectiveness of our market development efforts, but it also serves as motivation for other mid-sized companies contemplating a market listing. I am convinced that being listed will significantly support the company’s growth plans and help realize its international ambitions. I would like to congratulate everyone involved in the listing!”

Zoltán Jutasi, CEO of Navigator Investments Ltd., stated: “With this successful project, we have once again proven our belief that Hungarian SMEs have a place on the BSE Xtend market. We are proud that ÉPDUFERR chose Navigator Investments as their designated advisor for their listing on the BSE Xtend market and for the related capital increase. Such a project involves significant challenges for both the client and the advisors, as the company being listed must not only meet technical requirements but also make significant changes that affect daily operations. By successfully overcoming these challenges, including the Xtend listing and nearly HUF 1 billion capital increase, ÉPDUFERR has joined a club where the opportunities are high, but the expectations are equally so.”

Dénes Jobbágy, CEO of Széchenyi Funds, remarked: “ÉPDUFERR’s example proves that even in the construction industry, there are investment opportunities that offer stable, transparent, and significant value growth. We are glad that, with the current stock market listing and the support of Széchenyi Funds, ÉPDUFERR can embark on even more promising projects, both at home and abroad, contributing to the success of the Hungarian economy.”