The Budapest Stock Exchange Ltd. Based on the proposal of the Index Committee of the Budapest Stock Exchange, Delta Technologies Plc. shares will be included in the BUX basket from 20 March 2023.
As of 20 March, the BUX will have 17 members, including shares of Delta Technologies.
Delta Technologies Plc has become a committed player in the capital market over the past two years, with the entire share series being listed on the Budapest Stock Exchange's spot market, in the Standard category. At the Index Basket Review in September 2022, the share series was included in the BSE's index basket of mid- and small-cap stocks, BUMIX. In May 2022, Delta announced a positive profit warning and in its report published at the end of October, it reported that it had met these optimistic expectations.
Founded in 1987, the majority Hungarian-owned group, headquartered in Budapest, has been one of Hungary's largest IT companies for more than 35 years. With nearly 250 employees, the group focuses on complex infrastructure solutions, such as the design of complete architectures, the design and deployment of network solutions and hardware components, the integration of applications, and infrastructure management. The company's portfolio also includes servicing and trading of IT and office equipment. Delta's primary objective is to build on its most innovative areas of activity (e.g. digitalisation in enterprises, healthcare and public administration, Industry 4.0 developments, smart city solutions) and expand its current portfolio to maintain its leading position in the country and to enter the regional market.
With our last financial year, in which we achieved a result of over one billion forints, we closed a period, not only restructuring the Group, but also transforming its business strategy. The integration will soon be completed in company law terms, with the merger of the individual subsidiaries. This announcement by the BSE is both a confirmation of our transparent strategy for growth and a great help in further strengthening investor confidence.
In each case, the so-called Index Committee makes a recommendation to the CEO of the stock exchange as to whether a share should be included or excluded. Before making a recommendation, the committee checks that a number of conditions are met and also makes a subjective assessment. Based on February data, Delta Technologies Plc's share has moved up to 12th place on the BSE's turnover top list in the months since the last review.
Another important criterion was that it should represent an appropriate weighting of the total value of the shares in the listed public float in relation to the total public float of the basket. Delta has also performed outstandingly in terms of public capitalisation and, in the spirit of the Code, the objective criteria for inclusion in the BUX Index have been met. The Index Committee had the option, subject to the objective criteria being met, to classify as a light weight series of shares those Index basket aspirants whose weight in the basket fell between 0.1% and 0.3%, but this was not done and they were included in the BUX basket.
In the individual assessment, the qualitative parameters, current and historical specific characteristics, the current market and economic environment, index stability and other indirect aspects such as the issuer's activity, transparency or stock market outlook are taken into account.
