NAP can raise capital with interest-bearing shares

What happened?

NAP Nyrt.’s extraordinary general meeting on 28 September amended the articles of association and introduced a new class of registered, interest-bearing shares. Each such share may have a nominal value of HUF 100,000 and an issue value of at least HUF 200,000. The coupon is based on the yield, fixed at issuance, of a non-inflation-linked 10-year German federal government bond denominated in EUR, plus a premium of no more than 3.5 percentage points; payment is also made in EUR.

Until 31 December 2027, the board may increase registered capital in several tranches through a private placement without a prospectus, by up to HUF 2,000,000,000. The ceiling may therefore rise from the current HUF 9,339,625,000 to HUF 11,339,625,000.

What has not happened?

The meeting rejected a separate proposal for a capital increase through ordinary shares. The authorization that was approved does not mean that the board has already issued interest-bearing shares, set the final premium, identified subscribers or completed the capital increase.

Treasury shares

The meeting separately granted an 18-month authorization to acquire up to 100,000 ordinary shares with a nominal value of HUF 1,000 each. The purchase price may be the market price but cannot exceed equity per share. This authorization is not the same as an executed buyback.

What should investors watch?

The next checkpoints are a specific board decision, the participants in any private placement, the final coupon premium, registration by the company court and any new disclosure concerning treasury shares. If the board does not use the authorization, the resolution alone will not change the number of shares or the company’s capital.

Global Review is not reporting a price reaction because it has no appropriately licensed, current NAP share price. This is factual news, not an investment recommendation.