Make it your homepage |   E-mail: Subscribe Unsubscribe

IBM technology underpins project to make British Columbia’s the “smartest coast on the planet”


Saturday, April 19, 2014
News Making Money

WSE: “We Want Georgian Companies to be Listed Here”

Written by Mariam Papidze, The FINANCIAL

17/06/2013 09:23 (305 Day 11:16 minutes ago)

adam_maciejewski_7.jpg

The FINANCIAL --  The Warsaw Stock Exchange is open to cooperationwith the Georgian Stock Exchange, its President and CEO Adam Maciejewski told The FINANCIAL. Also Georgian companies are welcome to list at WSE, as the stock exchange continuesits long-standing focuson emerging markets.

ADVERTISEMENT

“We would welcome Georgian companies on our exchange. If there is will on both sides, there is also the right motivation to meet all listing requirements. We are encouraging Georgian companies to come to Poland,” Maciejewski said.

WSE is open to Georgian companies and at the same timeinterested in supporting the development of the Georgian capital market. “When we started our exchange, our capital market, over 22 years ago, we were very small. We have a significant track record in developing the market and in avoiding big risks. It does not mean that we know how to avoid any given risk. We probably made some mistakes along the way and that is why our advice would be useful for Georgian companies and the stock exchange,” he added.

According to Maciejewski, by deciding to list at WSE, Georgian companies will have access the largest institutional investor asset pool in Central and Eastern Europe and will enjoy significant ‘visibility’ among potential investors and business partners.

Q. The Warsaw Stock Exchange now lists the greatest number of companies in the entire region. It is also leading in terms of debuts. Does that mean that the WSE aspires to become the leader in Central and Eastern Europe?

A. We must bear in mind the specific economic role of a stock exchange. It is thanks to the stock exchange and other institutions of the capital market that we can influence the structure of corporate financing and household saving portfolios. We can also ensure better transparency of business operations. As WSE we strive to excel at both of those roles. The position that we hold in the region is the result of our efforts. Across the CEE region - covering Poland, Austria, Hungary, and the Czech Republic - in Q1 of 2013 we accounted for over 60 percent of share trading and 89 percentof volume in index futures.Over the same period of time, our share in the value of capital raised stood at virtually 100 percent. Also in terms of market capitalization of all listed companies, we have a 50 percent market share.

Q. It is said that the number of Georgian listings on the Warsaw Stock Exchange is set toincrease. What is the interest of the Warsaw Stock Exchange in getting Georgian companies to join, and at the same time, what will the benefits be forthe Georgian companies?

A. In general, companies should develop and assess their need for capital. The question is where this capital should be coming from. One option is frombank financing. The other is the capital market. In case of the capital market, we call it equitisation of the economy. It is not a healthy structure ifthe banking sector is much strongerthan the capital market orvice versa. A balanced model is alwaysthe most effective.

As I understand, Georgia does have a banking sector perfectly capable of providing capital for local companies but lacks a strong capital market. When in need of equity investors, Georgian companies are forced to go abroad. The question is then: where? They should probablychoose markets which are not that far away andina more or less similar cultural environment. Markets which are well-regulated and safe, and have already attracted the interest of international institutional investors and international companies. I am convinced that Warsaw is such a market. Many international investors are interested in Poland, precisely because Warsaw is already perceived as the hub of Central and Eastern Europe.

Q. The Government of Georgia intends to develop the Georgian Stock Exchange based on WSE’s experience. What do you think, how could WSE help the Georgian Stock Exchange to develop?

A. It is still too early to say how we can do this, but I am certain that after meeting withthe Georgian authorities we could create a stronger framework of cooperation that would benefitboth sides. It would result in a more interesting proposition for investors and a better service to investors in both markets. To thrive and expand in the current, very competitive, environment we should be open to international cooperation. We are currently living in globalised economies so we should think globally and forget about imposing any restrictions.

Q. How profitable could it prove to be for Georgian companies to be listed on WSE?

A. We do not know yet which companies could be listed on WSE and therefore we cannotdiscuss theirpotential gains in detail. There is a lot of capital interested in diversification of risk in Poland. It means that capital in Poland is looking for new, varied assets. We are looking for interesting investment opportunities from other geographies.

If Polish institutions are interested in investing in Georgian companies, the way to access capital will be quite straightforward. It will therefore be easier to finance their growth. If Georgian companies would like to be more visible in our market or internationally, a listing at WSE certainly facilitates that. International interest in the Georgian market will grow, not only for those companies, but forthe Georgian economy and for the country in general. Listing at the WSE is also a matter of increasing trust in your business. Public companies are much more transparent, they provide significant amount of information and investors are better protected by this knowledge. These companies will be managed in a better way than if they were to remain private.

Q. To be listed on the main market of the London Stock Exchange is very favourable for Georgian companies. What advantages could Georgian companies getfromjoiningthe Warsaw Stock Exchange?

A. We are doing our best to propose listing solutionsthat are cost-effective in comparison withother markets. Our trading floor, brokerage houses, banks, and law firms are very attractive in terms of costs - we provide world class service at still very affordable prices.This is something that a lot of our companies value. However, in my opinion there are other factors of even greater importance than listing costs. The London Stock Exchange is a very large market with a lot of companies. It is difficult for small and medium-sized companies to be recognized on a market where the main focus is constantlyon big companies. Imagine if you have 2,000-5,000 companies and you receive so many reports and analyses on these companies, would you want to focus on something which is at the end of the list? No, the interest is focused on the companies from the top.

WSE is a mid-sized exchange and mid-sized companies will gain better exposure here. We are a local market with leading position in Central and Eastern Europe. Of course, it does not mean that the only possibility for Georgian companies is WSE. But my understanding is that companies should carefully consider where theywant to be listed. The decision of Georgian companies to list onWSE can seamlessly connect with their business goals. If they would like to do business in Poland, the CEE region or even the EU as a whole, then listing in Warsaw is a reasonable choice and many companies from the region have followed that path.

In the modern economy we should let the companies decide what to do and where to go. A free market economy should allow all entities the freedom of choice, which should also include the freedom to choose the places to raise capital and list on a public market. Russian companies for example are certainly going to be listed on various stock exchanges and I daresay that their liquidity is bound to be higher on local markets. Warsaw’s key strength is chiefly a strong base of local investors interested in the possibility of diversifying their investment portfolios. Strong pension funds are another. Interesting companies do not get lost in the thick of thousands of other instruments. On the contrary, on a stock market of this size they are very likely to easily attract the attention and interest of both investors and analysts.

Q. Ukrainian companies eagerly entered WSE, yet many of them disappointed investors. Could this mean that the door is too open to foreign businesses?

A. Ukraine continues to be one of our most important markets, though the country’s economic difficulties have obviously adversely affected the condition of Ukrainian companies. However, every crisis and every recession will be over at some point. We have our office in Kiev and we certainly have no intention of closing it down. Its undeniable success is best measured by the fact that the highest number of foreign companieslisted on the WSE is from Ukraine . On the other hand, however, we will certainly not endeavour to attract any given foreign company. Instead, we wish to have only companies with a solid financial standing and an interesting equity story.

 

 

Make Your Comment

Add NewSearchRSS
Only registered users and facebook social network members can write comments!

This text is replaced by the Flash movie.
This text is replaced by the Flash movie.
Politics
Parliament issues strong call for EU lobby transparency register to become mandatory

16/04/2014 16:53 (2 Day 03:46 minutes ago)

The FINANCIAL -- The report approved by MEPs gives an important signal to the European Commission that a far more ambitious approach is needed to secure genuine lobby transparency in the EU, according to EUbusiness Ltd.

Read more...
TRAVEL BIZ
Early seat reservation for an extra charge with selected Economy fares

18/04/2014 17:42 (02:57 minutes ago)

The FINANCIAL -- Early seat reservation for passengers booked in selected booking classes (designated W, S, T, L, K) will incur a €25 per seat charge on long-haul flights in the future.

Read more...



World News
EBRD loans to boost energy efficiency and support competitiveness of Macedonian companies

16/04/2014 16:42 (2 Day 03:57 minutes ago)

The FINANCIAL -- The EBRD has teamed up with Macedonian bank, NLB Tutunska banka, to increase the competitiveness of the Macedonian private sector and to promote energy efficiency in the country with a €6 million financing package, according to EBRD.      

EBRD helps modernise Baltic freight handling

16/04/2014 16:29 (2 Day 04:10 minutes ago)

The FINANCIAL -- A €32.5 million loan from the EBRD to Klaipedos Smelte, the company operating the container terminal at Klaipeda port in Lithuania, helped modernise its freight handling capacities and upgrade the whole Baltics region as a transit hub, according to EBRD.

EBRD to provide first loan to Tunisian leasing sector

16/04/2014 16:26 (2 Day 04:13 minutes ago)

The FINANCIAL -- The European Bank for Reconstruction and Development (EBRD) is providing a €15 million senior unsecured loan to the Compagnie Internationale de Leasing (CIL) for on-lending to local micro, small and medium-sized enterprises (MSMEs) in Tunisia. The loan is the EBRD’s first investment in the country’s leasing sector, according to EBRD.

CityLife
Successful cities of the future are agile to adapt to global trends

11/04/2014 18:29 (7 Day 02:10 minutes ago)

newyork-streets-new-york-street-usa-feed-232220_copy.jpg

The FINANCIAL -- Cities worldwide face the challenge of growing economically while balancing the social and environmental side of the city to remain sustainable in the future.

TRAVEL BIZ »
PRESS RELEASES »
FINANCIAL »
UKRAINE »
GEORGIA »
WORLD »
BANKS »
BUSINESS »
TECH »
MARKETS »
B SCHOOLS »
SPECIAL REPORTS »

Markets
Private Sector Driving U.S. Wind Market Forward

18/04/2014 16:46 (03:53 minutes ago)

The FINANCIAL -- The onshore wind energy sector is booming in the United States, where there's enough of the renewable resource on hand to meet the annual demands for 15 million homes. It may take one of the biggest retailers in the world, however, to usher in the necessary change in energy consumption, according to The NASDAQ OMX Group, Inc., exchange company.

Jobs
Philippines: Further reforms to strengthen growth, create more and better jobs

11/04/2014 12:00 (7 Day 08:40 minutes ago)

The FINANCIAL -- The Philippines is likely to remain as one of the fastest growing economies in the East Asia and Pacific region in the next two years.

Oil&Auto
Chevrolet Cruze Named Diesel Car of the Year

16/04/2014 17:40 (2 Day 03:00 minutes ago)

The FINANCIAL -- Diesel enthusiasts around the world have determined the 2014 Chevrolet Cruze Diesel is the top diesel car of the year and Chevrolet is the top diesel manufacturer of 2014, according to General Motors.

Read more...
INSURANCE
M&A insurance grows as confidence increases

18/04/2014 16:18 (04:22 minutes ago)

The FINANCIAL -- As the green shoots of economic recovery have started to show in key markets like the UK and US, demand for mergers and acquisitions (M&A) insurance has been rising, according to Lloyd's, the world's specialist insurance market.

Read more...






Developed by Aleksandre Chiabrishvili

Design built by Creo Group