Erste Asset Management

Vienna Stock Exchange turns 250

Vienna Stock Exchange turns 250
Vienna Stock Exchange turns 250
(c) Wiener Börse
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Yesterday, the Vienna Stock Exchange celebrated its 250th birthday. The “Wiener Börse” was founded by Empress Maria Theresa on 2 September, 1771, making it one of the oldest stock exchanges in the world. Erste Group has a long-running and close partnership with the Vienna Stock Exchange, an institution both rich in tradition and very much focused on the future. 

Foundation of the Vienna Stock Exchange by Maria Theresa

Empress Maria Theresa founded the Vienna Stock Exchange in 1711 as a stock exchange for the purpose of raising capital for the state. It followed the French model and was under government control. Only bonds, bills of exchange and foreign currencies were permitted to be traded.

Stockbrokers, called ‘Sensale’ on the Vienna Stock Exchange, ensured smooth trading and received a commission for brokering the transactions. At the time, trading on Vienna Stock Exchange was conducted in person and not electronically as today. As the central market, the stock exchange guaranteed not only official price determination, but also speed and security in the settlement of transactions.

25 years on the Vienna Stock Exchange

Erste Group, which has been listed on the Vienna Stock Exchange for 25 years, is a heavyweight in the blue-chip ATX index. At the same time, we are a trader and market maker for a wide range of capital market products, a service provider for investors and issuers, and a shareholder of Wiener Börse AG. “Together, we are ‘bridge builders’ between the real economy and the financial sector,” as Stefan Dörfler (CFO Erste Group and member of the supervisory board of Wiener Börse AG) points out in a video greeting on the stock exchange’s birthday. 

Erste Group and the Vienna Stock Exchange 

Erste Group will celebrate the 25th anniversary of the listing of its shares on the Vienna Stock Exchange at the beginning of December 2022.  

Since its IPO in 1997, Erste Group’s market capitalization has increased significantly (from EUR 1.97 billion to currently EUR 14.68 billion)*, supported by a number of successful subsequent capital increases. Currently, 28.85% of our shareholders are attributable to Austria, with the majority of this stake being held by ERSTE Foundation, Sparkassenbeteiligungs GmbH & Co KG, savings bank foundations and other syndicate partners. The rest of Erste Group shares are mainly held by investors in North America, UK/Ireland and continental Europe.  
*based on a share price of EUR 34.15 as of 25 August, 2021.

The initial public offering (IPO) carried out in November 1997 was the largest-ever issue on the Vienna Stock Exchange up to that point in time, with the 11.5 million shares issued having an equivalent value of over EUR 500 million. To finance the expansion into the CEE countries (Hungary, the Czech Republic, Slovakia, Romania, Croatia and Serbia) that began in 1997, Erste Group undertook a total of four additional capital increases in the form of secondary public offerings (SPO) on the Vienna Stock Exchange.   

Since its IPO, Erste Group has not only developed into one of the leading financial institutions in Central and Eastern Europe, but also looks back on a successful, if at times also rather volatile, development of its share price. The stock reached its all-time high of EUR 61.50 in April 2007. In February 2009, as a result of the international financial crisis, the share recorded the lowest-ever price of EUR 7.00. By consistently implementing its strategy, Erste Group has managed to cope well also in challenging times, such as in 2009 or during the ongoing Corona crisis. Currently, the Erste Group share trades at around EUR 34, not least due to the upward revision of analysts’ estimates and our better-than-expected EBA stress test result.

Legal note:
Prognoses are no reliable indicator for future performance.

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Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. The language of communication of the sales offices is German and the languages of communication of the Management Company also include English.

The prospectus for UCITS funds (including any amendments) is prepared and published in accordance with the provisions of the InvFG 2011 as amended. Information for Investors pursuant to § 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in conjunction with the InvFG 2011.

The currently valid versions of the prospectus, the Information for Investors pursuant to § 21 AIFMG, and the key information document can be found on the website www.erste-am.com under “Mandatory publications” and can be obtained free of charge by interested investors at the offices of the Management Company and at the offices of the depositary bank. The exact date of the most recent publication of the prospectus, the languages in which the key information document is available, and any other locations where the documents can be obtained are indicated on the website www.erste-am.com. A summary of the investor rights is available in German and English on the website www.erste-am.com/investor-rights and can also be obtained from the Management Company.

The Management Company can decide to suspend the provisions it has taken for the sale of unit certificates in other countries in accordance with the regulatory requirements.

Note: You are about to purchase a product that may be difficult to understand. We recommend that you read the indicated fund documents before making an investment decision. In addition to the locations listed above, you can obtain these documents free of charge at the offices of the referring Sparkassen bank and the offices of Erste Bank der oesterreichischen Sparkassen AG. You can also access these documents electronically at www.erste-am.com.

N.B.: The performance scenarios listed in the key information document are based on a calculation method that is specified in an EU regulation. The future market development cannot be accurately predicted. The depicted performance scenarios merely present potential earnings, but are based on the earnings in the recent past. The actual earnings may be lower than indicated. Our analyses and conclusions are general in nature and do not take into account the individual characteristics of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity for loss, and risk tolerance.

Please note: Past performance is not a reliable indicator of the future performance of a fund. Investments in securities entail risks in addition to the opportunities presented here. The value of units and their earnings can rise and fall. Changes in exchange rates can also have a positive or negative effect on the value of an investment. For this reason, you may receive less than your originally invested amount when you redeem your units. Persons who are interested in purchasing units in investment funds are advised to read the current fund prospectus(es) and the Information for Investors pursuant to § 21 AIFMG, especially the risk notices they contain, before making an investment decision. If the fund currency is different than the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the amount of the costs associated with the fund in the home currency.

We are not permitted to directly or indirectly offer, sell, transfer, or deliver this financial product to natural or legal persons whose place of residence or domicile is located in a country where this is legally prohibited. In this case, we may not provide any product information, either.

Please consult the corresponding information in the fund prospectus and the Information for Investors pursuant to § 21 AIFMG for restrictions on the sale of the fund to American or Russian citizens.

It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Thus, this communication is not a substitute for investment advice, does not take into account the legal regulations aimed at promoting the independence of financial analyses, and is not subject to a prohibition on trading following the distribution of financial analyses.

This document does not represent a sales activity of the Management Company and therefore may not be construed as an offer for the purchase or sale of financial or investment instruments.

Erste Asset Management GmbH is affiliated with the referring Sparkassen banks and Erste Bank.

Please also read the “Information about us and our securities services” published by your bank.

Subject to misprints and errors.

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