Masterplast in moving forward with the elite

Masterplast Nyrt.’s stock exchange presence has reached an important milestone, from today, on the decision of the BSE, the company’s shares were reclassified in the Premium category. The stocks of key firms in the economy, also popular among investors, are placed in the Premium category. The technical introduction of Masterplast shares to the Budapest Stock Exchange took place on 29 November 2011, then alongside significant oversubscription, in 2012 the company raised a total of 1.8 billion Hungarian forints of fresh capital from the capital market. The success of raising capital at that time is shown by the fact that in the preceding years in Hungary it was unprecedented that a firm’s shares would be purchased by seven institutional investment groups at the same time. Following this, the company also held a successful share auction in the June of 2015, where the 400 thousand shares offered by the two main owners received purchase bids for close to three times the quantity.

The BSE created the Premium category in 2013. Only founder’s shares may be included in this sphere, so even at the time of reclassification the firm is obliged to produce and publish a Responsible Corporate Governance Report. Further conditions for introduction to the category include regulations regarding the quoted value, the free float, and at least 3 years operation. While being kept in circulation, the outputs must also fulfil excess demands, for instance for reclassification to and for remaining in the Premium category, the indices associated with trade must also be appropriate. Besides this, alongside the chosen language accepted by the HNB (which in the case of companies registered on the BSE is Hungarian for the most part), releases must also be published in English. Those who issue Premium category shares must produce a company event calendar for the current business year, which they are obliged to publish at the beginning of each business year.

“In recent years we have strengthened our market position with a new strategy and significant investments. Less than a fortnight ago on 6 October, we announced that we have launched into a new big investment on our Subotica site, in which we will increase the manufacturing capacity with an investment of close to 6.7 million euros. Besides this, the production will also comply with the higher quality expectations and the new industrial sales conditions in the future. We expect further expansion of income from the latest development, as well as more profitable operation in the future thanks to an improvement in production efficiency. The favourable construction industry environment provides us with the opportunity for dynamic expansion and our successfulness enabling dividend payment in the past two years promotes further growth” – said Dávid Tibor, president of Masterplast Nyrt. board of directors.

In 2015, the Masterplast Group launched a large-scale investment in Subotica, in which the fibreglass mesh manufacturing capacity was increased to a considerable extent with 8.4 million euros. The successful completion of the first development enabled the company to start a further project. The close to 6.7 million euro development just announced will expand the earlier, 8.4 million euro project, i.e. within just a few years the Masterplast Group will spend more than 15 million euros on increasing its manufacturing capacity.

By means of the investment, the fibreglass mesh manufacturing capacity of the Subotica plant will grow by more than 20 million square metres on an annual basis. Thanks to the investments, 105 new jobs will be created in the facility, and as a result of the expansion, also taking seasonality into consideration, the plant’s fibreglass mesh manufacturing capacity will exceed 90 million square metres annually.