Ten to twenty private companies seeking financing could be listed this year on AeRO, the Bucharest Stock Exchange’s (BVB) new market for SMEs and start-ups. A company’s financing needs total approximately EUR 500,000, Bogdan Mugescu, specialist within BVB, stated for Agerpres.
“This year we estimate that 10 to 20 private companies will be listed. If we consider that a company needs on average financing of approximately EUR 500,000, these companies’ financing needs basically total approximately EUR 10 M. We are talking about money that private companies want to obtain from investors, in order to be able to invest in their development. We launched this market on February 25. Two companies are already listed. The third company will enter this market in the following weeks,” Bogdan Mugescu pointed out.
He explained that the AeRO market is a mechanism developed by BVB through which start-ups and SMEs seeking financing can be listed and can obtain the money needed to develop their businesses from capital market investors – physical persons, funds.
He explained that the goal sought by AeRO is the creation “of another instrument at the disposal of entrepreneurs, other than going to the bank or to an investment fund” to seek financing.
“Banks currently cover 94 per cent of financings. We want this percentage to drop over the next years and the percentage of financings from the capital market to grow, so as to approach double-digit percentages. I think that from now on in approximately five years’ time we should have at least 10-15 per cent of financings covered by the capital market for SMEs and start-ups, but also for large companies alike. We have also started to hold talks with entrepreneurs that have businesses worth EUR 20-50 M,” Bogdan Mugescu added.