Thanks Tristan, good update as always. Tibor was increasing his stake from 91.38% to 93.32% during the H1'23, I guess he was picking shares around these prices or a bit less (1600-1800). I really wonder what are his plans, with this increase in his stake he shows that he does not want to distribute shares to the free float, but does he want to take it private eventually? I mean if you already have a 91%, for what do you want 2% more?
On the other hand, the 100% payout is pretty nice with the minority shareholders.
Pre-pandemic prices went up to 3,300 HUF, so it could re-rate to higher multiple eventually...
Well, let's see, thanks again for the work and the writeups!
Thanks for the complements. Tibor has held a stake like this basically ever since they listed and has bought and sold small amounts throughout that time. For context, the reason for their listing:
"We entered the stock market in 2009 to prove to customers that Kulcs-Soft is not a fake company and it assumes transparency. I don't think the size of the public share is a problem. As the owner of 90 percent of the shares, I sell shares to anyone who wants to buy. At the moment, that's how many people wanted to board"
~Tibor
"According to Tibor, he decided to take his company to the stock market for several reasons. First, their old dream has come true, and by entering the stock market, a huge free marketing channel opens up for them. Third, the collection of capital".
~Tibor
"Since we started the generational change (2016 when Ervin took CEO), your public share has tripled, and the number of our shareholders has gratifyingly doubled"
~ Ervin
But perhaps this the primary reason to remain listed is that according to Hungary laws at the time, if you take a dividend from a 'non-listed' company it would be subject to 25% dividend tax, but in the case of 'listed' companies it was 10%.
These are notes from news articles I have read on the company in the past but sorry I do not have the exact references.
Thanks Tristan, good update as always. Tibor was increasing his stake from 91.38% to 93.32% during the H1'23, I guess he was picking shares around these prices or a bit less (1600-1800). I really wonder what are his plans, with this increase in his stake he shows that he does not want to distribute shares to the free float, but does he want to take it private eventually? I mean if you already have a 91%, for what do you want 2% more?
On the other hand, the 100% payout is pretty nice with the minority shareholders.
Pre-pandemic prices went up to 3,300 HUF, so it could re-rate to higher multiple eventually...
Well, let's see, thanks again for the work and the writeups!
Hi Waits,
Thanks for the complements. Tibor has held a stake like this basically ever since they listed and has bought and sold small amounts throughout that time. For context, the reason for their listing:
"We entered the stock market in 2009 to prove to customers that Kulcs-Soft is not a fake company and it assumes transparency. I don't think the size of the public share is a problem. As the owner of 90 percent of the shares, I sell shares to anyone who wants to buy. At the moment, that's how many people wanted to board"
~Tibor
"According to Tibor, he decided to take his company to the stock market for several reasons. First, their old dream has come true, and by entering the stock market, a huge free marketing channel opens up for them. Third, the collection of capital".
~Tibor
"Since we started the generational change (2016 when Ervin took CEO), your public share has tripled, and the number of our shareholders has gratifyingly doubled"
~ Ervin
But perhaps this the primary reason to remain listed is that according to Hungary laws at the time, if you take a dividend from a 'non-listed' company it would be subject to 25% dividend tax, but in the case of 'listed' companies it was 10%.
These are notes from news articles I have read on the company in the past but sorry I do not have the exact references.