Hungary MKB shares listed on the Budapest Stock Exchange

The Chief Executive Officer of the BSE has decided on the listing of the dematerialised, registered ordinary shares of the issuer MKB Bank Zrt. in an amount of 100 million securities with a face value of HUF 1,000 each giving a total face value of HUF 100 billion as of 30 May 2019.

Whereas the ordinary shares of MKB Bank have been listed on BSE, trading in the shares is not yet possible, since the Issuer did not attach to its application the information and documents necessary for the commencement of trading.

A maximum of 90 days may be allowed for the fulfilment of the terms of the commencement of trading, and the requirements to be fulfilled before the beginning of trading are the following:

• Verification of the number of shareholders of the security series
• Specifying the Market Value of the security series
• Request regarding the First Trading Day
• Specifying the Listing Price
• A statement by KELER Zrt. and KELER KSZF Zrt. specifying that the security is accepted for account keeping, recording and exchange settlement
• Fulfilment of other disclosure obligations in accordance with Regulations on Listing relating to the application process.

MKB had to pledge going public by the end of 2019 to the European Commission in exchange for the state aid it received during its resolution.

When asked by Portfolio, MKB’s Chairman-CEO Ádám Balog told a press conference on 26 April that initially the bank is aiming for the listing of a “smaller" batch of its shares, and in the longer term it wants to float 20-30% of its shares.

I may be slightly biased, but I believe the bank is worth more than its equity, Balog replied to Portfolio’s question. MKB’s equity stood at HUF 158 bn at the end of 2018, which means a 5% share package would be worth more than HUF 7.9 bn and a 10% package would be worth more than HUF 15.8 bn.

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