The Hungarian equity capital markets experienced a dynamic period in 2025, building on the renewed issuance momentum that began in 2024. Hungary distinguished itself by the depth of domestic investor participation and the successful execution of large-scale transactions on the Budapest Stock Exchange. Record-breaking equity offerings demonstrated that, even in a persistently high interest rate environment, issuers could access public equity capital when valuation discipline, transaction structuring, and investor communication were well aligned. Notably, retail investors remained highly relevant during this period. Their participation – supported by local distribution channels and familiarity with domestic issuers – was decisive in anchoring demand alongside institutional capital.
Originally published in CEE Legal Matters.
András Orbán
Counsel, Head of Equity Capital Markets
Key Transaction Trends
In recent years, equity capital markets activity on the Budapest Stock Exchange’s regulated market has been dominated by public offerings from financial institutions. This trend underscores their strategic use of equity markets to strengthen capital positions and enhance visibility. A significant milestone occurred in December 2024 with the initial public offering of Granit Bank Nyrt., marking the reopening of the IPO market for regulated entities. The transaction featured a robust domestic retail tranche alongside institutional participation, highlighting the critical role of retail investors in successful offerings. This upward trend culminated in December 2025 with the secondary public offering of MBH Bank Nyrt. – the largest equity transaction on the Budapest Stock Exchange in the past 25 years. Nearly 12,000 retail and institutional investors participated, mobilizing an unprecedented investor base by local standards. These transactions demonstrate that Hungarian equity stories, when supported by scale, transparency, and strong fundamentals, can attract exceptional market interest. DLA Piper Hungary acted as issuer’s counsel in both transactions, providing insight into the growing alignment of Hungarian market practice with broader European ECM standards.
Beyond the banking sector, real estate issuers also accessed the regulated market. Notably, Shopper Park’s secondary capital increase combined equity raising with strategic financing objectives.
Mid-Cap and Xtend Platform
The Xtend platform – a multilateral trading facility created and operated by the Budapest Stock Exchange – is designed as a preparatory platform rather than a final destination. It has increasingly fulfilled this role, with listings and follow-on capital increases allowing mid-sized companies to familiarize themselves with public market requirements and build a track record of transparency and investor engagement. This has meaningful long-term implications for the market pipeline. A steady flow of Xtend issuers transitioning to the main market is critical for sustaining equity capital markets activity beyond the less frequent large-cap transactions. STRT Holding’s progression from Xtend to the Standard Market via a modest public transaction at the end of 2025 exemplifies how this framework operates in practice. This move underscores the issuer’s ambition and signals the increasing depth and maturation of Hungary’s equity capital markets.
Upcoming Regulatory Changes
Looking ahead, the implementation of the EU Listing Act in 2026 is expected to significantly affect the regulatory framework for equity issuance across the European Union, including Hungary. Key elements include simplified prospectus formats, increased thresholds for exemption from full prospectus requirements, and a broader reduction of administrative burdens for issuers seeking admission to trading or conducting follow-on offerings. For Hungarian issuers, the practical relevance of these reforms should not be underestimated. Lower compliance costs and faster execution timelines may help bridge the gap between private and public capital, making public markets a more realistic option for companies. However, regulatory simplification alone cannot substitute for fundamental issuer readiness or investor confidence – these can be improved primarily through positive examples from recent years.
Future Perspective
The experience of 2024-2025 indicates that Hungary’s equity capital markets are well-positioned for continued growth. Successful large-scale transactions, an engaged retail investor base, and a developing mid-cap pipeline provide a strong foundation for sustained activity. If upcoming EU regulatory reforms are implemented effectively at the local level, and issuers continue to approach the market with realistic valuations and compelling equity stories, Hungary is poised to maintain its role as one of the most dynamic equity markets in the CEE region.
Author: András Orbán
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