First IPO in Azerbaijan to be held in 2014
By Aynur Jafarova
The first IPO in Azerbaijan will be held in 2014, administration head of Azerbaijan's State Securities Committee told journalists on November 28.
"We have high expectations for 2014. One of them is to hold the first Initial Public Offering (IPO) on the Baku Stock Exchange," Bakhtiyar Azizov said.
Several Azerbaijani companies, including GoldenPay, are preparing for the placement and have shown an interest in holding the IPO.
GoldenPay is a company specializing in e-payments. The company expects to put 10 percent of its shares on a public offering.
"At present, the preparation process is underway," Azizov said. "Various consultations are being conducted with professional market participants and the State Committee."
Earlier it was reported that the first IPO in Azerbaijan may take place by late 2013.
Preparation for a public offering includes various procedures, including a financial audit.
Moreover, it will be necessary for the company to re-register from a Limited Liability Company to Open Joint Stock Company for an IPO.
An education center under State Securities Committee will also be established by the end of the year.
"The center will start working in 2014," Azizov said.
Azizov went on to note the first investment fund in Azerbaijan will be licensed in 2014.
"This is a very complex and multi-staged process, the implementation of which requires a lot of time," Azizov said.
Head of the licensing and control department under the State Committee for Securities Farid Rahimli said the licensing process for the future investment fund is currently underway.
The Azerbaijani State Securities Committee issued a license for the activity of İnvest Az Asset Management Company in asset management in late August. Permission was granted for five years.
"Earlier, the State Committee issued the appropriate license to the management company. Moreover, we have had one formal and several informal requests for getting licenses for investment funds," Rahimli said.
Rahimli also said interest in the collective investment schemes is growing in the market.
"The investment funds are a radical innovation for the Azerbaijani market, as well as in preparing management companies and investors," he said. "Time has passed. The market is now ready for such institutions in Azerbaijan."