National Stock Exchange Development Fund

Together with private investors, the fund, launching in 2017, provides capital to businesses that undertake being listed on the BSE Xtend market as well as preparing to issuing shares on the stock exchange. The typical investment size of the fund is HUF 1 billion, in exchange for a minority stake in the given company.


The stocks of companies listed on Xtend can be placed in so called “long-term investment accounts”. By not withdrawing the amount and yield paid into and accumulated on the long-term investment account for at least five years, the owner can access the entire amount tax-free after this period.

Investor confidence.

Going public on the BSE Xtend market does not need to involve an initial public offeringand can typically take place after raising private capital. The company is thus given an opportunity to become familiar with public operation and becomes better equipped to address investors down the line as part of an IPO.


The BSE Xtend market is ideal for medium-sized companies that are sufficiently mature and eligible for going public, plan on implementing significant growth in the coming years and are looking to use external funding to accomplish this goal.

Scope of investors.

On BSE’s new market, companies can reach investors that are looking to invest in dynamically growing businesses.

Why do medium-sized businesses need the capital market and public listing?

The external funding structure of Hungarian small and medium-sized enterprises is, in most cases, loan-based. In recent years, by way of various European Union initiatives, medium-size businesses gained the opportunity to raise capital through various venture capital funds. Even so, many medium-sized companies are still reluctant to involve owners who wish to participate actively in the company’s day-to-day operation, as it is so typical of venture capital investments. Public operation allows companies to establish a more dispersed investor structure during fundraising, relinquishing ownership control to new investors only to the extent determined by themselves, and this is what BSE Xtend offers assistance with.