Baku, Azerbaijan, Nov. 6
By Taleh Mursagulov - Trend:
The companies willing to hold listing should have the correct corporate governance structure, transparent reporting and profitable activity, Deputy Director of Azerbaijan’s InvestAZ investment company Orkhan Bagirov said in an interview with Trend.
Bagirov noted that the promotion of an IPO (initial public offering) in Azerbaijan began in 2011 with the signing of a decree by Azerbaijani President Ilham Aliyev on the development of the securities market in 2011-2020. Subsequently, in order to give an additional impetus, these points were reflected in the 2016 Strategic Roadmap on Financial Services, he said.
In this regard, so far, measures have been taken on legal regulation and the creation of technical infrastructure, he added.
“As a result of this, we already see a desire in the private sector to hold an IPO, and the Azerbaijani government also plans to put up for privatization five major state organizations in coming years by listing,” he said.
Bagirov noted that listing of companies on the stock exchange is prestigious and reliable, but this can be done if there are professionalism and transparency.
He added that not only readiness, but also desire is important for holding IPO.
“Conducting an IPO in Azerbaijan can be incorrectly assessed,” he said. “An IPO is not the only way to raise funds. Moreover, for shareholders who are afraid to fully sell their part of shares, this is a way to keep assets constantly liquid and reflect the results of a company’s activities in the market.”
In addition, Bagirov stressed that the tax and customs reforms initiated in Azerbaijan in 2016-2017 and continuing to this day have greatly helped to ensure transparency in the private sector.
“As a result of these reforms, we hope to see successful IPOs in the coming years,” the deputy director added.
No IPO has been carried out in Azerbaijan so far. However, local banks and companies spoke about such plans at various times. For example, CEO of Azersun Holding Savas Uzan told Trend on Sept. 28 about negotiations with foreign consultants for holding of an IPO of shares of the Azerbaijan Sugar Association Production, which is a part of the holding.
Unibank, one of Azerbaijan’s biggest banks, is showing interest in an IPO as well. Chairman of the bank’s board Faig Huseynov earlier told Trend that in the long term, the bank plans to hold an IPO.
IPO in Azerbaijan at different times was discussed by such companies as Embawood and GoldenPay. Recently, Azersun Holding has also reported about such plans.