"IPOs to make Serbia focus of investors"

Public enterprises' stock initial public offering will make Serbia an attractive investment destination, officials say. Minister of Economy and Regional Development Mladjan Dinkic, Deputy Prime Minister Bozidar Djelic, and Belgrade Stock Exchange (BSE) Director Gordana Dostanic were all taking part in a round table discussion organized by the BSE in Belgrade Tuesday. "IPOs to make Serbia focus of investors" Dinkic said that the IPOs will also increase foreign direct investments (FDI) into Serbia in the next three years, putting the number at USD 6bn annually. The state-owned giants, such as power corporation EPS, oil monopoly NIS, and state telecommunications company Telekom Serbia are all still unlisted. The minister said that distribution of free shares, to be regulated by a law currently in parliamentary procedure, aims to bring a huge number of shareholders into the public companies and control them better. He said that registration of citizens for free shares in the companies Galenika, Telekom, Nikola Tesla Airport and the power company EPS will begin a month after the adoption of the law on free distribution of shares which is currently in parliament, and the shareholder base will be complete by fall, according to a report on the government website. Parallel to this, in the first quarter of 2008, a public tender will be announced for a privatization advisor which will recommend an IPO strategy to the Serbian government, said Dinkic. He added that Telekom and Galenika should be listed in the stock exchange by the end of the year, Nikola Tesla Airport in 2009, and EPS in 2010. Dinkic explained that six months after the IPOs and following the formation of share prices, citizens will be able to trade their stock. Bozidar Djelic, meanwhile, told the gathering it is necessary to strengthen the securities market and improve share trading in Serbia, and to transform Belgrade into a regional financial center, such as Warsaw in central Europe. He said that with the help of the IPO the BSE will increase from EUR 15bn to EUR 50bn within four to five years. Djelic added it is "very realistic that Belgrade will becomes a regional financial center". The BSE head, Gordana Dostanic, said that results of the stock exchange show that Serbia has a mature capital market which needs companies that will attract foreign investors. Analysts have for some time now been warning that the BSE needs fresh securities in order to attract investors and improve the current level of trading.

"IPOs to make Serbia focus of investors"

Dinkić said that the IPOs will also increase foreign direct investments (FDI) into Serbia in the next three years, putting the number at USD 6bn annually.

The state-owned giants, such as power corporation EPS, oil monopoly NIS, and state telecommunications company Telekom Serbia are all still unlisted.

The minister said that distribution of free shares, to be regulated by a law currently in parliamentary procedure, aims to bring a huge number of shareholders into the public companies and control them better.

He said that registration of citizens for free shares in the companies Galenika, Telekom, Nikola Tesla Airport and the power company EPS will begin a month after the adoption of the law on free distribution of shares which is currently in parliament, and the shareholder base will be complete by fall, according to a report on the government website.

Parallel to this, in the first quarter of 2008, a public tender will be announced for a privatization advisor which will recommend an IPO strategy to the Serbian government, said Dinkić.

He added that Telekom and Galenika should be listed in the stock exchange by the end of the year, Nikola Tesla Airport in 2009, and EPS in 2010.

Dinkić explained that six months after the IPOs and following the formation of share prices, citizens will be able to trade their stock.

Božidar Đelić, meanwhile, told the gathering it is necessary to strengthen the securities market and improve share trading in Serbia, and to transform Belgrade into a regional financial center, such as Warsaw in central Europe.

He said that with the help of the IPO the BSE will increase from EUR 15bn to EUR 50bn within four to five years. Đelić added it is "very realistic that Belgrade will becomes a regional financial center".

The BSE head, Gordana Dostanić, said that results of the stock exchange show that Serbia has a mature capital market which needs companies that will attract foreign investors.

Analysts have for some time now been warning that the BSE needs fresh securities in order to attract investors and improve the current level of trading.