The FINANCIAL — For the first time ever, Georgian companies made their debut at the IPO Summit Warsaw 2013 with prospects of being listed on the Warsaw Stock Exchange. TBC Bank responded to the call of the WSE and intends to be listed on it by 2014-2015.
“TBC Bank is interested in the IPO Warsaw Stock Exchange in the long-term perspective. The Bank is still in the process of discussions on choosing the proper stock exchange to be listed on but so far, it is assumed that the final decision will be WSE. As time is needed to prepare for WSE we plan to be listed there in about two years,” said Maia Dzirkvelishvili of TBC Bank.
Thus, negotiations about listing Georgian companies on the Warsaw Stock Exchange have already started. Representatives of several Georgian companies including TBC Bank and BDO attended the IPO Summit Warsaw 2013 together with Giorgi Kvirikashvili, Minister of Economy and Sustainable Development of Georgia, for the purpose of presenting the terms and conditions for Georgian companies to WSE.
The FINANCIAL flew to Warsaw to speak with Georgians officials and businessmen attending the IPO Summit Warsaw 2013.
“It is inevitable that Georgian companies will be listed on the Warsaw Stock Exchange,” said Giorgi Kvirikashvili. “Diversification of the capital market is one of the most important priorities of Georgia. For us, this issue is closely linked with the development of the national economy. The Warsaw Stock Exchange is one of the most dynamic in Europe and we believe that negotiations with it will benefit Georgia. But moreover our aim is the maximum integration of the Georgian stock market with the eastern platform,” he added.
In addition, intense cooperation is planned with Poland in pension reforms, according to Kvirikashvili.
“We came here to find out what the advantages or disadvantages of the Warsaw Stock Exchange are, how investors recognize the perspectives of listing on WSE and to see how things will develop for Georgian companies,” said Zurab Lalazashvili, Managing Partner at BDO, a Georgian limited liability company. “BDO is going to hold a press conference where we together will explain to the Georgian companies why it is favourable for them to be listed on WSE. We will give them information on how to prepare for WSE and whether or not it is the right time to be listed there,” he added.
“First of all Georgian companies should start preparing for WSE and then wait for the right time. Unfortunately, nowadays very few companies are ready for WSE. Georgian companies should see how important it is for them to attract money from Europe, from WSE. I am in negotiations with many Georgian companies. As far as I know, they are already interested in WSE. Why is it good for companies to issue assets and put them on the stock exchange? The companies do not have to pay money – if it has profit it pays, if it does not – it does not pay. This rule is good for those companies which need to be developed, or that have a big loan and want to replace it with the equity,” Lalazashvili added.
Together with the Georgian delegation, more than 600 guests attended the third IPO Summit Warsaw 2013. This year’s Summit was opened by Donald Tusk, the Prime Minister of the Republic of Poland followed by Wlodzimierz Karpinski, Minister of Treasury of the Republic of Poland. Both of them introduced to guests the Polish capital market and shared the achievements that the country has had over the past year.
“The importance of the WSE, which is a regional leader, is growing. Therefore I am confident to declare that Poland is now one of the best countries for investment worldwide,” said Donald Tusk, Prime Minister of the Republic of Poland, after he emphasized the ever strengthening position of the Polish capital market not only in the CEE region.
“When developing the Polish capital market, it is of the utmost importance for us that our investors’ investments are long-term and safe,” said Wlodzimierz Karpinski.
“The positive impact of investment and advisory firms on foreign companies to debut on the Warsaw Stock Exchange means a greater interest in the Polish stock exchange among foreign investors,” said Pawel Tamborski, Undersecretary of State, Ministry of Treasury. “This year we want to go a step further. Obviously, we will continue to have a strong focus on issuers. However we would also like to introduce another element which would directly target investors’ needs. We want Warsaw to be regarded as an attractive place by large investments funds which can raise the capital here,” he added.
The IPO Summit ended with one-on-one meetings with board members of Polish blue chip companies listed on the WSE and foreign companies preparing their debuts.
The Summit also included the IPO Summit Warsaw Award 2013 ceremony. The award winners were selected in five categories. In the Best Domestic Emerging Long Fund 2013 category Amplico OFE was the chosen winner whereas Franklin Templeton Investment got the distinction of the Best International Markets Long Fund 2013. Jabre Capital Partners was elected the Best International Emerging Markets Alternative Fund 2013 and Alior Bank won in the Best Regional IPO on the Warsaw Stock Exchange 2013 category. The special award – The Bridge Award 2013 – went to BlackRock.
The FINANCIAL would like to thank the WSE and the Embassy of Poland in Tbilisi for their great support in arranging interviews in Warsaw and for their excellent hospitality.
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