Azerbaijan may privatise state firms via capital markets, BSE chair says

Azerbaijan may in the future carry out the privatisation of state-owned enterprises through capital markets, the chairman of the supervisory board of the Baku Stock Exchange (BSE), Farid Akhundov, said.

He said the country’s private sector is entering a new stage of maturity, a process that is unfolding in parallel with the deepening of capital markets.

Akhundov noted that PASHA Bank’s initial public offering (IPO) sent an important signal not only for the bank itself but for the broader market.

“We hope that other private companies will follow this path and that, at the next stage, state enterprises will implement their privatisation plans specifically through capital markets,” he said.

He added that from the bank’s founding stage, principles protecting minority shareholders were incorporated into its founding documents, including within the framework of cooperation with the International Finance Corporation (IFC).

According to Akhundov, trust remains the key factor in the development of capital markets.

“Our primary mission is to gain and maintain the market’s trust. Confidence among both retail and institutional investors must be strengthened,” he stressed.

He also said the BSE is currently undergoing a transformation aimed at creating an environment based on transparency, high ethical standards and investor protection.

N. Tebrizli