This initiative is part of the National Capital Market Development Strategy and aims to enhance the transparency and efficiency of asset management at state-owned companies, as well as – attract private investment (including from citizens and foreign funds) and facilitate integration into European financial markets.
Currently, small stakes in companies where the state has no leverage are being offered through the regulated securities market: Moldindconbank—the state’s 0.05% stake is up for sale. LimiImpex (a company providing vehicle inspection and certification services)—the state’s 0.57% stake is being sold.
With the opening of the Moldovan International Stock Exchange in Chisinau, the largest commercial companies with state participation will have opportunities to diversify their financing by using modern financial instruments to attract investment and develop their businesses.
How it will work
At a seminar held at the State Property Agency with the participation of representatives from major state-owned companies, the advantages of accessing the capital market were discussed, including the opportunities provided by issuing corporate bonds and listing on the stock exchange to improve efficiency, capitalization, and competitiveness of companies.
Listing on an international exchange will allow for the establishment of fair market capitalization for strategic state-owned enterprises and the improvement of corporate governance standards. To go public, companies will need to adopt strict international standards for auditing, transparency, and reporting.
The ability to raise funds directly from a wide range of investors, conducting an IPO / SPOs (share placements on technology platforms, including Arena Trading) to attract institutional capital and expand to the international level—all these promising prospects should attract well-capitalized state-owned companies and make their securities the foundation for the development of the secondary market.
