Some Azerbaijani state-owned companies could eventually launch IPOs

Some Azerbaijani state-owned companies could eventually launch initial public offerings (IPOs) as part of reforms aimed at attracting private capital, Asian Development Bank (ADB) Country Director Sunny Durrani said.

“Our strategy is to work with a few key state-owned enterprises to help corporatize them, improve their financials, improve their business strategy, so that some of them will have an IPO eventually, and then they can open up to more direct private capital,” Durrani said.

He did not specify which state-owned companies could potentially launch IPOs or provide a timeframe.

Durrani said ADB is also working with Azerbaijan’s finance and economy ministries and the Central Bank on policy reforms aimed at attracting private investment.

He said the bank uses various instruments to reduce risks and mobilize private financing. As an example, he cited ADB’s participation in financing the Shah Deniz gas field development, when the bank provided international commercial banks with a partial credit guarantee of about $500 million.

ADB also sees potential for investment in natural capital and innovative infrastructure, including through concessional financing, impact investment and green financing instruments, Durrani said.