New Bucharest Stock Listings Get Up to €300K Grants Starting June 7

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The Ministry of European Investments and Projects (MIPE) launches today a new call for projects titled “Listing on the Stock Exchange of Enterprises,” aimed at Romanian companies with majority private capital seeking financing through the capital market and listing on the Bucharest Stock Exchange (BVB).

Companies can apply for funding from June 7, 2024, until May 31, 2025, with available financing ranging from EUR 70,000 to EUR 300,000, depending on the BVB market they are listed on.

The total financial support available for companies aiming to attract capital through public offerings or private placements and listing on the Bucharest Stock Exchange amounts to EUR 38.2 million.

Funding applications are submitted online via the platform https://proiecte.pnrr.gov.ro and are evaluated on a “first come, first served” basis.

The call for projects “Listing on the Stock Exchange of Enterprises” is financed by the National Recovery and Resilience Plan and the state budget.

“The development of the capital market by increasing the number of listed companies, the diversification of the economic sectors from which they come and the expansion of the investor base, is part of a strategy started two years ago, from the mandate of the Minister of Finance, and I am glad that this instrument financed by the National Plan of Recovery and Resilience (PNRR) it shows the combined efforts of the state, the stock market and the private sector, which continue in a formula of complementarity that will raise the level of attractiveness of Romania, strengthening our investment position in the region and at the European level”, said Adrian Caciu, Minister of Investments and European Projects.
“The stock exchange is an important part of the national economy and represents, along with the banking sector, the most important source of financing for local companies. We are happy with the support that the authorities give to the development of the capital market by launching the second call for projects aimed at supporting companies to list on the stock market. The authorities of the Romanian state are with us on several levels: by drafting and implementing the capital market development strategy, by participating in the improvement of the governance framework (Corporate Governance Code of the BVB) and its implementation at the level of public companies and by constantly developing of the financing program through the issue of FIDELIS state securities listed on the stock exchange. The program to support the development of local companies through listing on the stock exchange, launched by the Romanian Government through the Ministry of Investments and European Projects, contributes to the development of the Romanian economy and brings local entrepreneurs closer to the bell of the stock exchange”, said in his turn Radu Hanga, President of the Bucharest Stock Exchange.
“Since the beginning of the year, we have had three listings of companies at the Bucharest Stock Exchange that have attracted more than 140 million euros from investors in the market, through the public offer and private placement. Stock market investors, both institutional and retail, have already shown their willingness and interest in financing companies that want to be listed on the stock market or that issue other types of financial instruments to attract the necessary capital for business development. The call for projects launched by the Ministry of Investments and European Projects comes at a time of thawing of the listing market and we hope that the non-refundable support granted through the National Recovery and Resilience Plan will reach as many companies as possible”, added Adrian Tanase, CEO Bursa by Values ​​Bucharest.
The value of the allocated financing represents a percentage of a maximum of 70% of the eligible expenses, but not more than 8% of the value of subscriptions to newly issued shares following an initial public primary offer, a mixed offer or a private placement. The difference between the total eligible expenses of the project and the non-refundable financial aid granted represents the beneficiary’s own contribution or the co-financing of the eligible expenses.
The call for projects “Listing companies on the stock exchange” is financed by the National Recovery and Resilience Plan and from the state budget and was made public today by MIPE. The total available budget is 38.27 million euros, of which 34.77 million euros are financed from the Recovery and Resilience Mechanism and 3.5 million euros from the state budget, representing the amount of non-deductible VAT related to eligible expenses. It is the second call for projects that support the attraction of capital through capital market mechanisms and the listing of Romanian companies on the stock exchange launched by MIPE, within the PNRR. The first such project was carried out in March-April 2023.
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