TODAY.AZ / Business

BSE in talks with companies over first IPO

24 April 2017 [13:23] - TODAY.AZ

By Azernews


By Laman Ismayilova

Currently a large number of companies in Azerbaijan are physically ready for holding an initial public offering (IPO), and the Baku Stock Exchange is working with them.

Acting Chairman of BSE Management Board Vugar Namazov made the remark in an interview with Trend.

"But at present, our companies have wrong attitude towards an IPO. For them, this is a sale of property to which one can resort only at the last moment," he said.

Namazov reminded that getting listed on a stock exchange is not only about raising funds – it also greatly promotes a company. “I know there are companies that understand this," Namazov added.

He said the Baku Stock Exchange is actively working with a number of companies that are going to enter the debt instruments market and that there are those interested in issuing shares.

"I believe it is not long before this happens, as a stable legal and technical basis has been formed for holding an IPO in Azerbaijan," he noted.

An IPO is the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by large privately owned companies looking to become publicly traded.

Earlier Namazov said that the first IPO in Azerbaijan can be completed in the near future.

The IPO of five strategically important companies of the country is envisaged in one of the "Strategic Road Maps" approved in late 2016.

Public placement of shares in Azerbaijan at different times was considered by such companies as Embawood and GoldenPay. Azersun Holding recently announced about such plans as well.


URL: http://www.today.az/news/business/160477.html

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