At launch time, the BET AeRO includes 20 companies selected based on quantitative criteria and starts with a value of 1,000 points. The methodology for the new index allows a variable number of constituents in its structure and does not impose a maximum number.
“The launch of BET AeRO, an index dedicated to the Romanian companies listed on the AeRO market, is an important moment in the development of the overall capital market. Thus, we answer to both investor demand, and to the transformation undergone by this market, especially since the beginning of this year. With 17 listings on the AeRO market this year alone, and 17 bonds listed on the Multilateral Trading System, we demonstrate, yet again, that the stock exchange is the right place for Romanian entrepreneurs seeking financing, visibility, and transformation”, said Radu Hanga, President of the Bucharest Stock Exchange.
The market capitalization of the companies listed on the AeRO market has exceeded RON15 billion, a 57% increase compared with last year. During the first nine months of 2021, 17 new companies have been listed on the AeRO market, with a total market capitalization of RON1.3 billion.
The BET AeRO methodology will allow, in the future, the inclusion of new companies into the index structure, as they meet the eligibility criteria. The two quantitative criteria of the BET AeRO index are liquidity and free-float capitalization. For a company to be included into the index basket, it is necessary for its liquidity coefficient to be at least 0.5% (50 bps) and its free-float capitalization to be at least RON5 million, at the time of the analysis. A company already included in the index basket will be maintained if its liquidity coefficient is at least 0.2% (20 bps), at the time of the analysis. The weight of the companies in the index basket takes into account the free-float level of each company while the maximum weight that a company may have in the index basket is 15%.
“The companies included in the BET AeRO index at launch time account for approximately 40% of the capitalization of the Romanian companies listed on the AeRO market and have generated more than 85% of the liquidity of the secondary market of this segment over the past year. The BET AeRO launch is a normal step in the market development, as one of our efforts to develop, along with simplifying the access to the market for companies which intend to get listed on the alternative segment starting with 2022. Moreover, we are glad to launch at the same time two new indices for the Main Market which come in addition to BET and BET-XT indices with their net total return variants”, said Adrian Tanase, CEO of Bucharest Stock Exchange.
The AeRO market is the equity segment of the alternative trading system of the Bucharest Stock Exchange. It is a market segment designed for listing of early-stage companies, start-ups and SMEs, to finance their projects, growth stories, increase their visibility and contribute to the development of the business environment. AeRO was established by the Bucharest Stock Exchange in order to provide a market with less reporting obligations for the listed companies, but at the same time with sufficient transparency for investors to motivate them to invest.