Suppose you want to list your company on the BVB Main Market or on AeRO. The first question that usually arises is what are the costs? We have prepared two tables, below, with these aggregate costs, which should be taken into consideration when listing.

Please, bear in mind – these costs are pre-established, and the capital attracted via listing on the stock market doesn’t have to be refunded. In addition, there are many other benefits that come with listing, media advertising being one of them, so the money you invest in listing are not lost money.

MAIN MARKET

Let us presume that you have a company with a potential market capitalization of RON 150mn (EUR 32.5mn) and want to raise RON 50mn (EUR 11mn) to invest in the development of the company. What costs should you consider?

Bucharest Stock Exchange (BVB)

Fee Amount
RON EUR
Processing fee 1,200 259
Admission for trading

[one time only; the fee varies between RON 3,600 – 21,000 (EUR 776 – 4,520) based on Shareholder’s equity/ Monthly Weighted Average Value]

3,600* 776*
Maintenance for trading

[yearly; the fee varies between RON 3,600 – 21,000 (EUR 776 – 4,520) based on Shareholder’s equity/ Monthly Weighted Average Value]

3,600* 776*
Trading fee (0.135%)

one time only [variable fee (%), based on the value of the offer]

[calculated for a RON 50mn (EUR 11mn) offer]

67,500 14,559

 

Central Securities Depository (CSD)

Fee Amount
RON EUR
Admission/maintenance fee based on the number of securities holders

yearly [the fee (%) varies based on the number of shareholders of the company]

(applicable fee for companies with 501 – 1,000 shareholders)

1,200 259
Fee for allocation of ISIN code

(one time only)

119 26
Fee for clearing and settlement of transactions resulted from subscription within primary public offers – equities

(0.004% for IPO) (%) variable, based on the value of the offer

[calculated for a RON 50mn (EUR 11mn) offer]

2,000 431

 

Financial Supervision Authority

Fee Amount
RON EUR
Percentage of the value of the sale public offer **

[(0.1%) – variable fee (%), based on the value of the offer]

[calculated for a RON 50mn (EUR 11mn) offer]

50,000 10,784
Tariff for registering the financial instrument

(one time only)

500 108

* minimum fee applied to Standard Tier

** variable fee, based on the value of the offer [but not more than RON 1mn (EUR 215,689)]

 

Cost to attract RON 50mn (EUR 11mn): RON 129,719 (EUR 27,979)

 

In addition to the administrative costs, you should keep in mind that you need the support of a broker, who will help you prepare the documentation, promote your company and find investors. As opposed to administrative costs, the so-called “advisory costs” are not fixed and depend on the size and complexity of your offer.

  • Intermediary -1 – 4% of the value of the offer, depending of the broker
  • Lawyers – variable, depending on the size and complexity of the offer
  • Auditors – variable, depending on the size and complexity of the offer
  • Marketing – variable, depending on the size and complexity of the offer

 

Depending on the complexity and size of the offer, it is possible to work with lawyers, auditors and, in the case of very large offers, PR and marketing agencies that will help you to promote your offer. However, the details and tariffs applicable to your offer must be discussed with the broker. If you are interested in listing, it is advisable to meet with at least 3 brokers to see what each of them has to offer. Overall, the total cost of consulting services for your offer is estimated at 1-4% of the value of the offer. However, in some cases it may be more or less.

 

AeRO

Now let’s see how listing on AeRO compares with listing on the Market Main.

Let us presume your company received an evaluation of RON 5mn (EUR 1.1mn) and you want to raise RON 1mn (EUR 215,690) to develop a new product. How much does a private placement cost on AeRO?

 

Bucharest Stock Exchange (BVB)

Fee Amount
RON EUR
Processing fee – one time only 250 54
Admission fee – one time only 700 151
Maintenance fee 2,000 431

 

Central Securities Depository (CSD)

Fee Amount
RON EUR
Fee for allocation of ISIN code – one time only 119 26

 

Financial Supervisory Authority (FSA)

Fee Amount
RON EUR
Tariff for registering the financial instrument

(one time only)

500 108

 

Cost to attract RON 1mn (EUR 215,690): RON 4,409 (EUR 951)

Of course, as in the case of the Main Market, in addition to the administrative costs, you need to keep in mind that you need the support of the Authorized Advisor (AA). The AA will prepare the memorandum and make sure there are investors interested in your company and that they are capable of investing together the amount of money you want to raise.

Unlike administrative costs, the so-called consulting costs are not fixed and they depend on the size and complexity of your offer. The Consultant may charge you about 5% of your offer value for preparing the memorandum and for finding investors for your company. However, in some cases, it may be more or less.

DISCLAIMER: This document has been prepared for informational purposes only and does not constitute a price indication or investment recommendation. For more information on the cost of listing your company on the Bucharest Stock Exchange, contact a Broker or an Authorized Consultant.

Leave a Reply

Your email address will not be published.