Amendments to the Public Offering of Securities Act (POSA) relating to the BEAM growth market19 October 2022
With the latest amendments to the Public Offering of Securities Act (POSA), which entered into force on 1 July 2022, a significant change has been introduced in the BEAM growth market. The original threshold of EUR 3,000,000 (BGN equivalent) for exemption from publishing a prospectus for the public offering of securities, was increased to EUR 8,000,000 (BGN equivalent).
In the reasons given for their POSA amendments, the Council of Ministers stated that opportunities would be created for small and medium-sized enterprises (SMEs) to raise capital at lower costs and with fewer administrative burdens. Simultaneously, it would enable compliance with admission requirements for multilateral trading systems such as growth markets. The government hopes that this will boost interest and increase subscriptions in growth market public offerings.
This news directly concerns the only growth market in Bulgaria: the BEAM market of the BSE. It has been operating since 2019 and offers a number of facilities for SMEs seeking capital. It is expected that the BEAM market will increase as a result of wider access to investments.
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