Serbian Minister of Economy and Regional Development Mladjan Dinkic said today that during the upcoming three years Serbia will become the most attractive investment destination owing to Initial Public Offering (IPO) in privatisation of public companies.
In his speech at the roundtable discussion on privatisation of public companies in Serbia through IPO organised by the Belgrade Stock Exchange, Djelic said that IPO will increase Foreign Direct Investments (FDI) into Serbia.
According to Djelic, FDI influx will stand at an annual $6 million during the next and upcoming years.
The Minister said that distribution of free shares aims to bring a huge number of shareholders into the public companies and control them better, and provide an opportunity to citizens to learn share trading. He added that the distribution of free shares is not justified in an economic but a social sense.
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 autumn.
Parallel to this, in the first quarter of 2008, a public tender will be announced for a privatisation advisor which will recommend an IPO strategy to the Serbian government, said Dinkic. He added that Telekom and Galenika should be on 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 initial offering and following the formation of share prices citizens will be able to trade in shares.
Serbian Prime Minister Bozidar Djelic said that it is necessary to strengthen the securities market and improve share trading in Serbia, and to transform Belgrade into a regional financial centre, such as Warsaw in central Europe.
He said that with the help of the IPO the Belgrade stock exchange will increase from €15 billion to €50 billion within four to five years. He said that it is very realistic that Belgrade becomes a financial centre in the region.
Director of the Belgrade Stock Exchange Gordana Dostanic said that results of business at the stock exchange show that Serbia has a mature capital market which needs companies that will attract foreign investors. (Economy, December 25.)
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