Page 152 - SE Outlook Regions 2023
P. 152
5.3 Markets - Bulgaria
Bulgaria’s stock market revived in 2021 following the deterioration in
2020 caused by the coronacrisis. In 2022, the stock market was
negatively affected by the Russian invasion in Ukraine, particularly in
February and March, when the blue-chip SOFIX index fell sharply. It
subsequently recovered but declined again after the October 2 snap
general election that has produced even more political instability and
lack of perspective for a regular government in the coming months.
Although in the weeks after the vote the index gradually recovered, at
the beginning of December it stood at only 605.43 points – above the
538.96 points in early March but below the 650.71 points in early
January.
The movement of the index will depend on internal politics and
developments in Ukraine through 2023. As a new early election is
expected in March, this could again drag down the bourse trade.
Despite that, several IPOs and bond issues are expected in 2023.
Bulgarian investment company Rodina Capital, previously known as
Rodina 91, will seek authorisation from its shareholders to increase its
capital to up to BGN50mn over a period of five years. The capital could
be raised via a new share issue or by converting bonds or warrants into
shares. Rodina Capital will also seek authorisation to issue warrants
that entitle shareholders to subscribe for shares in a future capital
increase. During the potential capital increase, existing shareholders
will be entitled to acquire shares corresponding to their stakes in the
company.
Bulgarian diversified group Ekip-98 Holding decided to issue freely
transferable and secured eight-year bonds worth BGN15mn. The bonds
have a floating semi-annual coupon based on the six-month Euribor
plus 3.00%, but no less than 3.25% and no more than 6.00%.
Bulgarian honey-based products producer Mellifera has applied to hold
an IPO on the BEAM growth market of the Bulgarian Stock Exchange,
seeking to raise up to BGN2.01mn. The company plans to offer up to
456,500 shares with a par value of BGN1 and an issue price of BGN4.4
per share. Bulgarian asset manager Ug Market will act as advisor on
the deal.
BEAM was created to allow small and medium-sized enterprises
(SMEs) to seek listings under simplified procedures as compared to the
regulated market.
There are also companies that plan IPOs and bond issues on
international bourses.
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