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The weight of AutoWallis shares in the BUX index significantly increases as its capital market strategy is being implemented


In accordance with the Budapest Stock Exchange resolution, the weight of AutoWallis shares in the BUX basket increases by more than 35%. Based on this decision, the shares of the stock exchange automotive company shall have a weight factor of 0.3125% in the index as of March 22, thereby occupying the 11th highest position in the list.

The Budapest Stock Exchange decision contributes to the realization of AutoWallis’s strategy, one of the objectives of which is to increase the capital market activity of the corporation, and the free float and market liquidity of the shares. In the context of these objectives, the company is currently examining the possibility of public funding, which is also aimed at the general public. Gábor Székely, Chief Investment Officer of AutoWallis, pointed out that the capital market elements of the strategy announced by the corporation had already been partially realized over the previous two years. These include a successful issuance of bonds worth HUF 3 billion under the Funding for Growth Scheme, as well as the realization of several closed capital increase contributions in kind. Among other factors, these latter contributed to the increase of the free float of the shares to 30.97 percent, and the company’s shares were included in the Premium category already in 2019. Gábor Székely added that the corporation was confident that the weight of the shares within BUX would continue to grow and that they would also be included in other indices, like CECE. In addition, the six acquisitions and business developments announced last year were an important step towards the realization of their objectives, and they are expected to result in a threefold increase of the company’s revenues in 2021 compared to the 2018 figure. For the partial financing of these developments, AutoWallis carried out a capital increase of HUF 1.4 billion with the participation of three institutional investors in December last year. Last year’s capital increases of AutoWallis were also recognized by the Budapest Stock Exchange panel of experts, which awarded “The Share Capital Increase of the Year” to the company at the Best of BSE Award 2020 Gala. AutoWallis received this award due to having realized a total capital increase of HUF 4.4 billion in 2020 for the financing of its growth plans, part of which was realized already last year by introducing shares worth HUF 3 billion, and HUF 1.4 billion of which shall be carried over to this year.