BAKU, Azerbaijan, September 25. Azerbaijani companies hold significant potential to access international capital markets, and establishing an appropriate capital market ecosystem is essential for this, Head of Europe, Primary Markets, at the London Stock Exchange, Ayuna Nechaeva, said during the 2nd Azerbaijan International Investment Forum held in Baku today, Trend's correspondent reports from the event.
According to her, the development of capital markets plays a crucial role in economic growth and diversification, as well as in the expansion of investment portfolios.
"For Azerbaijani companies, raising funds from local and international capital markets is not solely about attracting investment or diversifying investment portfolios. It is also significant in terms of gaining international prestige and visibility, utilizing shares in mergers and acquisitions, and creating long-term value," noted Nechaeva.
She pointed out that ensuring sustained market liquidity—and creating the appropriate ecosystem to support it—is essential for enabling investors to easily buy and sell shares.
"The right ecosystem must be established for this purpose. An efficiently functioning capital market creates an environment where companies can succeed," the London Stock Exchange representative emphasized.
Nechaeva announced that legislation and state support are just as important as the operations of the stock exchange itself in the development of capital markets.
"The Baku Stock Exchange knows very well what needs to happen. They have their own tools and sound strategies. At the same time, external factors must also be involved in the process. Establishing appropriate legislation at the national level and securing necessary support from key institutions and the government can bring about real change," she noted.
The London Stock Exchange representative said that Azerbaijan possesses significant capital potential and that there is no shortage of equity capital in the country.
"Azerbaijan is a well-capitalized country. There is no lack of equity capital here. It is no coincidence that the level of national debt is low," said Nechaeva.
She emphasized that the development of capital markets is a long-term process.
"The London Stock Exchange is over 300 years old. Building efficient capital markets takes time; it is not something that happens overnight. The key is establishing a dialogue," she added.
Nechaeva mentioned that the London Stock Exchange collaborates with stock exchanges in the Trans-Caspian region, Central Asia, and other emerging markets.
She noted that opportunities for dual listing between the Baku Stock Exchange and the London Stock Exchange are being discussed. "We are discussing dual listing opportunities. Such an opportunity already exists in Kazakhstan between the Astana International Exchange and the London Stock Exchange," said Nechaeva.
According to her, local investors should have the same access as international financial institutions during major initial public offerings (IPOs).
"When a large and significant IPO takes place, it is vital that local investors also have the opportunity to participate in this major event on equal terms with international financial institutions," she emphasized.
Nechaeva said that the stock exchange has a vested interest in the long-term success of companies.
"We differ from investment banks and other market participants. We provide the infrastructure upon which the market operates. At the same time, we are interested in the long-term success of companies," she noted.
According to her, companies shouldn't be encouraged to launch an IPO before they are ready for the capital market.
"We don’t push companies to enter the market before they are prepared. We always focus on their success and on ensuring that our interests align with their long-term success," Nechaeva added.
