Partial listings could increase the number of tradable shares without necessarily requiring the state to relinquish control. Retaining a majority stake while floating a meaningful minority holding could substantially expand free float. A 20–30% free float, supported by professional governance, regular reporting and sufficient institutional participation, would have a different market impact from a nominal listing involving only 5% of a company. Larger listings could broaden foreign investor participation, strengthen domestic asset management and increase retail involvement. Additional companies could then gain greater confidence in using public markets for financing.
- Aerodrom Nikola Tesla highlights the importance of free float
- Corporate governance remains relevant to investor participation
- Domestic investment and pension savings could support equities
- Regional integration could broaden the investor pool
- BELEX15 rally reflects both stronger demand and limited market depth
Aerodrom Nikola Tesla highlights the importance of free float
Aerodrom Nikola Tesla remains one of Serbia’s more actively traded listed companies and contributed significantly to recent market turnover. Its relative liquidity demonstrates the importance of having enough shares available for investors to enter and exit positions.
Greater liquidity can also increase analyst coverage and improve price discovery, potentially attracting additional investors. The issue for Serbia is therefore not simply the number of listed companies but the quantity of shares that can actually be traded. Messer Tehnogas demonstrates the distinction: despite an implied value of approximately €530 million, only a limited portion of that value is readily available to market participants.
Corporate governance remains relevant to investor participation
Free float is not the only factor affecting liquidity. Institutional investors also require predictable corporate governance, timely financial reporting, transparent related-party transactions, clear dividend policies and credible protection of minority shareholders. Improved investor relations could further broaden the potential investor base. Regular communication, management access, English-language reporting and transparent capital-allocation policies can make listed companies more accessible to international and institutional investors.
Domestic investment and pension savings could support equities
Capital-market development also depends on investor behaviour. Serbian households have traditionally favoured real estate and bank deposits, while stocks are often viewed as more speculative. At the same time, digital brokerage platforms are making global equities increasingly accessible to younger investors. Serbian savers can therefore gain exposure to US technology companies and European blue-chip stocks through online platforms while bypassing domestic equities.
Long-term pension savings could provide another source of domestic demand. Serbia’s pension system remains dominated by the public pay-as-you-go model, limiting the amount of institutional capital available for equity investment. Further development of voluntary or funded pension savings, together with larger insurance and investment-fund sectors, could create a more stable domestic investor base and reduce dependence on short-term retail trading.
Regional integration could broaden the investor pool
Greater integration among Southeast European exchanges could also address the scale limitations faced by individual national markets. Common trading infrastructure, cross-listings, harmonised settlement systems and easier broker access could create a broader regional investment universe. For Serbia, potential links could include markets in Croatia, Slovenia, Romania and Bulgaria, although national regulation, infrastructure and investor practices remain fragmented.
BELEX15 rally reflects both stronger demand and limited market depth
The latest increase in BELEX15 demonstrates that Serbian equities are attracting sufficient demand to push the benchmark to its highest level since 2008. Domestic economic growth, inflation-driven increases in revenues and asset values, corporate profitability, relative attractiveness of equities compared with bank deposits and valuations below some European peers can support genuine price gains. The market’s limited size makes it difficult to determine how broadly that revaluation is occurring. The contrast is particularly clear in Messer Tehnogas. A company with an implied market value of approximately €530 million recorded a 20% price increase following transactions involving only 10 shares.
The development of Serbia’s equity market will therefore depend on whether future growth in the BELEX15 is accompanied by substantially higher genuine equity turnover, broader participation and greater availability of tradable shares. With BELEX15 at an 18-year high, the benchmark has reached a level not seen since 2008. Yet the limited volume required to move some constituent stocks sharply continues to demonstrate the gap between the size of Serbia’s economy and the depth of its domestic equity market.
