Otar Sharikadze, Managing Director at Galt & Taggart states that some state companies can make a great contribution to the development of the capital market.
According to him, the capital market of Georgia needs large emissions, including from such state companies as the Georgian Railways and the state electricity system.
"There are several large state-run companies that have great potential in this direction. They can enter the market with different types of involvement, be it bond issue or equity securities.
Since the reform began, the capital market significantly grew. Last year was a record year, as more than GEL 600 million was issued in the market, although this placement is still a small volume. To bring in big investors, we need liquidity, it is necessary to have big issues, where these big companies will make big purchases.
When we talk about large companies, such as, the Georgian Railways or the State Electric System, they may have an emphasis on larger placements. In Georgia, commercial banks play a significant role in the development of the capital market. I believe that when there are many investors in the market, banks will have market competitors. All this will lead to healthy competition, which will be good for both banks and corporate clients," Sharikadze says.
