Azerbaijan, Baku / Trend / The Government of Azerbaijan should use Russia's example and hold the first 'popular IPO' - public placement of stocks through attracting several of the country's citizens. The best is to take the first step in privatizing Kapital Bank. In this case, tens of thousands of citizens may become shareholders to one of the leading banks in the Country.
Three popular IPOs have taken place in Russia currently. The results of the final IPO on Vneshtorbank justified all expectations, by exceeding all indicators of IPO on 'Rosneft' and 'Sberbank'. More than 131,000 people became shareholders to Vneshtorbank. Generally 30,000 rubles or $1,172 was enough to become a shareholder of the bank.
Experts are guaranteeing successes in the IPO on Kapital Bank in Azerbaijan. Firstly, the large role in this regard is played by the image of the second effectively-managed State bank of Azerbaijan. Secondly the banking sector does not depend on the oscillation of the world oil prices. This sector in Azerbaijan is one of the most prospective spheres although currently the economy develops more rapidly than the banking sector.
The idea of IPO is to release billions of dollars from mattress investments, decrease consumer demand, and make the popular monies work for the economy. On the one hand, the population will have an opportunity to participate in the capital of the large corporations. On the other hand, stimulating the investments into the securities against drastic growth of the consumer expenses is one of the ways to decrease inflation.
Before holding an IPO, it is necessary to carry out a large information campaign among the population. Despite that the privatization process has already been continuing in Azerbaijan for already twelve years, the population does not have theoretical or practical knowledge on the possibilities of the fund market.
Gaining an opportunity to acquire stocks, hundreds of Azerbaijani citizens will play a significant role in making a decision on management of the bank and use stock as investment tools so that the allocated finances bring profits.
(Ellada Khankishiyeva - expert of Trend Analytical Centre).