BAKU, Azerbaijan, June 24. The ratio of Azerbaijan’s total market capitalization to gross domestic product (GDP) has risen by around one percentage point, reaching close to 4%, following the initial public offering (IPO) of PASHA Bank, Trend's correspondent reports from the event.
Speaking at the “Opening Bell” ceremony marking PASHA Bank OJSC’s public share offering and the start of secondary market trading, Ruslan Khalilov, Chairman of the Board of Directors of the Baku Stock Exchange (BSE), said the transaction signals a new phase in the development of the country’s capital markets.
He noted that the IPO, along with another listing over the past three years, reflects growing momentum in Azerbaijan’s equity market development.
“The successful placement of the second IPO in the last three years in a country with over 30 years of capital market history allows us to say with greater confidence that the Azerbaijani capital market is entering a new stage characterized by expansion,” Khalilov said.
He added that the Central Bank of Azerbaijan has played a key role in building the market ecosystem, particularly through improvements to the regulatory framework and the provision of technological and expert support.
According to Khalilov, the Baku Stock Exchange and the National Depository Center have also contributed significantly in recent years to strengthening the technological and institutional foundations of the capital markets.
“In the past three years, substantial work has been carried out to develop technological systems for capital markets, ensure integration with market participants, and improve listing procedures, trading admission, market organization, and other regulatory mechanisms,” he said.
Khalilov also praised the execution of PASHA Bank’s IPO, calling it highly professional and well-structured, particularly in terms of investor communications and the presentation of financial indicators. He said this is expected to have a positive impact on secondary market trading of the shares.
He further highlighted the macroeconomic significance of the offering.
“Until now, Azerbaijan’s market capitalization-to-GDP ratio stood at approximately 2.7–3%. As a result of PASHA Bank’s IPO, this indicator has increased by around one percentage point, approaching 4%,” he said.
Khalilov also expressed appreciation to investment firms and market participants involved in the offering, including PASHA Capital, ABB Invest, and Unicapital, noting that the IPO represents a broader success for the market rather than a single institution.
