IPO process must become continuous – Farid Akhundov

When discussing IPOs, particular attention should be paid to the pre-IPO and post-IPO stages — that is, the periods before and after the offering.

This was stated by Farid Akhundov, Chairman of the Supervisory Board of the Baku Stock Exchange.

According to him, after an IPO is conducted, the key issue becomes working with a broad base of minority investors, ensuring regular market disclosure and maintaining transparency. PASHA Bank already has certain experience in this area.

“However, a more systematic and rigorous approach to market disclosure — especially towards large investors — will be required. The Baku Stock Exchange has established listing and trading rules, and we would like to see full compliance with them. Investors’ interests directly align with the interests of the Exchange. Disclosure and the application of corporate governance standards must be ensured at a high level,” he said.

Akhundov stressed that the main challenge is to ensure the sustainability of the IPO process.

“Not one IPO every three or five years — the process must be continuous. Compared to 2024, stock trading volumes increased in 2025. The key task now is to ensure that this growth becomes sustainable,” he noted.

In his view, the market has already entered a phase of institutional and technological improvement. Local platforms are being integrated with international markets.

In this context, he cited the integration with the Abu Dhabi Exchange’s Tabadul platform as an example.

“This integration means that future IPOs, including PASHA Bank’s IPO, could attract broader foreign investor interest. This is what we would like to see. Significant work remains to be done, but the market is already moving beyond its initial formation stage,” he added.

Akhundov believes that a potential IPO of PASHA Bank could serve as a signal not only for companies within PASHA Holding, but for the broader private sector as well.

“The time has come for alternative investment and financing instruments to take shape in the market. Issuances and capital markets must become a real financing mechanism for businesses,” he concluded.

N. Tebrizli