The first winner
To be a successful awardee, a company must be fully committed to transparent operation and must also have rapid growth potential. This latter award criterion also carries great weight when the BSE evaluates the applications. It is not by chance that Megakrán Ltd., whose solutions and technological equipment are unique in the entire segment, is one of the leading operators in the market; and it is not by accident that it is the first company to win GINOP support. The company, which provides special craning, lifting and machinery installation services and several auxiliary services closely associated with them, also participates in the ELITE Programme, the BSE and the London Stock Exchange Group’s joint international business development programme.
Megakrán Ltd. and the Stock Exchange
The history of Megakrán is a showcase example of how a small domestic business turns into a financially solid and competitive medium-sized enterprise. There are several things that a business must do to achieve that, and the services provided by the Stock Exchange can help companies with it all. Megakrán started to consciously work towards that goal back in 2016, achieving important milestones like joining the ELITE Programme and then starting to prepare for its IPO in 2018. That was the moment that took the process of maturing into a medium-sized enterprise to a new level. Megakrán was granted total support of 40 million forints in the course of the project.
The Issuers Acquisitions Division believes that several additional enterprises will be granted an opportunity to join the IPO preparation programme this year.
About GINOP support agreement no. 1.1.7-17-2017-00001
In 2017, the Ministry for National Economy (NGM) published a call for applications related to GINOP programme no. 1.1.7-17-2017-00001 titled ‘Improving SME sector efficiency primarily by taking measures to facilitate public listing’, a part of the Széchenyi 2020 programme. Justified by the BSE Strategy for 2016–2020, the Hungarian stock exchange submitted an application, which the NGM approved and found worthy of support. Consequently, small and medium-sized domestic enterprises either participating in specific international training programmes or seeking financial support for their public listing preparations have been able to submit their relevant applications to Budapest Stock Exchange through the BSE GINOP mentoring programme since March 2018.
The overall BSE GINOP mentoring project is specifically designed to focus on enterprises which show the potential to be suitable for listing and/or to be an attractive investment option for Hungarian institutional or private investors after the preparatory period.
The GINOP mentoring project comprises two parts. In the first half of the project, the BSE aims to launch a cooperation programme, providing European training and mentoring services and promoting them to target group enterprises. The primary objective of the second part of the project is to support the IPO preparation of companies with rapid growth potential that are open to transparent operation in the public arena, and which are ready for and undertake listing on the Xtend (MTF) platform, specialising in the domestic regulated market or the SME sector, within 18 months of application.
The BSE provides companies that meet the criteria set out in the Call for Applications, as published on the website, with non-refundable grants (at 50% intensity) up to the available funds. Furthermore, it guarantees the participation of the selected SMEs in the mentoring programme supporting their preparation for public listing.
More information on the programme and the terms of application is available here.