BAKU, Azerbaijan, September
25. Azerbaijani companies hold significant
potential to access international capital markets, and establishing
an appropriate capital market ecosystem is essential for this, Head
of Europe, Primary Markets, at the London Stock Exchange, Ayuna
Nechaeva, said during the 2nd Azerbaijan International Investment
Forum held in Baku today, Trend's correspondent reports from the event.
According to her, the development of capital markets plays a
crucial role in economic growth and diversification, as well as in
the expansion of investment portfolios.
"For Azerbaijani companies, raising funds from local and
international capital markets is not solely about attracting
investment or diversifying investment portfolios. It is also
significant in terms of gaining international prestige and
visibility, utilizing shares in mergers and acquisitions, and
creating long-term value," noted Nechaeva.
She pointed out that ensuring sustained market liquidity—and
creating the appropriate ecosystem to support it—is essential for
enabling investors to easily buy and sell shares.
"The right ecosystem must be established for this purpose. An
efficiently functioning capital market creates an environment where
companies can succeed," the London Stock Exchange representative
emphasized.
Nechaeva announced that legislation and state support are just
as important as the operations of the stock exchange itself in the
development of capital markets.
"The Baku Stock Exchange knows very well what needs to happen.
They have their own tools and sound strategies. At the same time,
external factors must also be involved in the process. Establishing
appropriate legislation at the national level and securing
necessary support from key institutions and the government can
bring about real change," she noted.
The London Stock Exchange representative said that Azerbaijan
possesses significant capital potential and that there is no
shortage of equity capital in the country.
"Azerbaijan is a well-capitalized country. There is no lack of
equity capital here. It is no coincidence that the level of
national debt is low," said Nechaeva.
She emphasized that the development of capital markets is a
long-term process.
"The London Stock Exchange is over 300 years old. Building
efficient capital markets takes time; it is not something that
happens overnight. The key is establishing a dialogue," she
added.
Nechaeva mentioned that the London Stock Exchange collaborates
with stock exchanges in the Trans-Caspian region, Central Asia, and
other emerging markets.
She noted that opportunities for dual listing between the Baku
Stock Exchange and the London Stock Exchange are being discussed.
"We are discussing dual listing opportunities. Such an opportunity
already exists in Kazakhstan between the Astana International
Exchange and the London Stock Exchange," said Nechaeva.
According to her, local investors should have the same access as
international financial institutions during major initial public
offerings (IPOs).
"When a large and significant IPO takes place, it is vital that
local investors also have the opportunity to participate in this
major event on equal terms with international financial
institutions," she emphasized.
Nechaeva said that the stock exchange has a vested interest in
the long-term success of companies.
"We differ from investment banks and other market participants.
We provide the infrastructure upon which the market operates. At
the same time, we are interested in the long-term success of
companies," she noted.
According to her, companies shouldn't be encouraged to launch an
IPO before they are ready for the capital market.
"We don’t push companies to enter the market before they are
prepared. We always focus on their success and on ensuring that our
interests align with their long-term success," Nechaeva added.
