Armenia is among the top three countries in CIS according to the convenience of its investment legislation and infrastructures for Armenian investors.
Head of the market capital, metals and mining sector of KPMG Russia, Olga Plevako, told the aforementioned to journalists on Tuesday at the seminar held by Ameriabank CJSC for potential Armenian securities issuers at the London Stock Exchange (LSE).
According to her, the size of the Armenian market and its emission portfolio are not that big. But considering the falling profitability in developed markets, the investors both in Russia and other countries are looking for new markets and possibilities. Thus, companies, which are present in not particularly attractive markets but have strong individual indexes, can find investors, including thise who are specialized in CIS markets.
In Plevako's words, they can be expected to offer discounts for certain risks. But the better a company prepares its accounting and management for the listing, the greater are the chances for profitable transactions.
“Out of all world stock markets exactly LSE works most with the emitters from Russia and CIS. They have investors, who work in these countries, understand all the risks and setup, including the political ones.
No other financial platform in the world has such practice. The companies lacking the listing experience at stock market and securities issue would better start with debt instruments (including eurobonds) than shares. This will allow to attract financing at a definite and not changeable interest,” she added.
Ameriabank CJSC is the largest bank in Armenia according to its assets, loan portfolio, obligations and deposits. The overall capital of the bank currently amounts to about $200 mln, its overall assets making up about $1 bln by the end of 2015.
The stocks of 268 foreign emitters from private and public sectors were traded at the LSE in September 2016. In September alone they attracted 16 bln 957 mln pounds. Apart from this, 49.9 percent of member companies in the AIM growth market have capitalization of less than 25 mln pounds (approx. $31 mln).
