Shares of some Azerbaijani banks are in demand

Business Materials 9 March 2018 16:15 (UTC +04:00)

Baku, Azerbaijan, March 9

By Anvar Mammadov – Trend:

Shares of some Azerbaijani banks are in great demand at exchanges, Jafar Ibrahimli, Azerbaijani expert specializing in capital markets, told Trend March 9.

"A few years ago we had three main banks, shares of which were freely sold in the market, namely, International Bank of Azerbaijan, Kapital Bank and DemirBank,” he said. “Unfortunately, DemirBank has already closed, but the shares of the remaining two banks are in great demand in the market."

The expert said that under favorable financial conditions, the International Bank of Azerbaijan and Kapital Bank may hold an initial public offering (IPO).

"If today these two banks hold an IPO, a big number of investors will purchase their shares,” he said. “The banks should understand that holding an IPO will benefit them. Five years ago, European investors were ready to buy shares of our banks at a five-fold price, but most banks did not sell them."

“This led to serious problems in the country's financial sector in 2015-2016,” he said. “Both money market and capital market should develop to ensure the stability of the financial sector.”

"Both of these markets should develop simultaneously,” he said. “If this does not happen, the problems of the banking sector may recur."

Today 30 banks operate in Azerbaijan.