Listing on the Bucharest Stock Exchange implies some very important advantages, out of which we mention: obtaining access to funds and increase of capital, increased liquidity, having a recognized stock market, employee incentives by distributing shares, payment of creditors with shares etc. Of course the main role, extremely important for companies, especially in times of financial crisis or periods with low liquidity, when access to finance is more difficult and more expensive, is to attract funding for companies who want to develop the business. Of course the operation of listing a company with the Stock Exchange in Romania comes with a full list of requirements, each type of listing different in this sense.
For all types of listings (Equities Sector, Debt Securities, Bonds & Funds) there are general requirements, such as the registration with the National Securities Commission (C.N.V.M.) and the requirement for the financial instruments to be transferable, dematerialized and fully paid for registered securities.
In order to be able to list a Romanian company on the regulated market of the Bucharest Stock Exchange an investor would have to firstly have an SA (Romanian Joint Stock Company) or alternatively transform its existing limited company to a Romanian SA (Joint Stock Company). This legal operation can be conducted by our law firm.
The subsequent steps will refer to a shareholder’s resolution (decision) to trading on the Bucharest Exchange, choosing of a authorized intermediary agreed upon by the Stock Exchange, obtaining the necessary authorizations from BVB (Bucharest Stock Exchange), Procedure of Public Offering (if case may be), Admission of securities to trading the Bucharest Stock Exchange and the securities’ registration with the respective Romanian institution.
Listing of your company on the ATS implies fulfillment of most of the steps for the Bucharest Stock Exchange regulated market. Therefore besides the requirement to work through a Joint Stock, Resolution of the Board of Directors, preparation and filing of documents with the Central Depository, one has to hire a brokerage house and register the shares with the National Commission. The shares will of course have to be admitted on ATS.
An investor looking to list on the Bucharest Stock Exchange will have to take into consideration 4 types of fees: 1) The Processing Fee, 2) The Listing Fee, 3) The maintenance fee and 4) The promotion fee.
The above constitutes very basic information on the listing with the BVB. For in-depth information you are welcome to contact our law firm and obtain further information.