Ilic: Successful Initial Public Offering by the End of 2009

Serbia expects to issue at least one successful initial public offering (IPO) by the end of 2009, State Secretary of the Ministry of Finance Slobodan Ilic said at a gathering dedicated to introduction of IPO. The IPO Project, that is, the first issuance of shares of unlisted companies, will be realized in two phases, Ilic said. He specified that the first phase is underway and will last till April, to be followed by the plan execution.
Serbia expects to issue at least one successful initial public offering (IPO) by the end of 2009, State Secretary of the Ministry of Finance Slobodan Ilic said at a gathering dedicated to introduction of IPO. The IPO Project, that is, the first issuance of shares of unlisted companies, will be realized in two phases, Ilic said. He specified that the first phase is underway and will last till April, to be followed by the plan execution.

“IPO fosters global integration and is an attractive financial instrument, especially important for domestic and foreign investors”, Mr. Ilic underscored. He added that a successful IPO will contribute to development and deepening of Serbian capital market, which will be beneficial for all market participants.

Mr. Ilic also said it was in everyone’s interest to remove barriers for IPO and discrepancies between domestic and EU legislation that governs IPO. He explained that there are different IPO practices in different countries, but the main principles remain the same.

Hildegard Gacek, European Bank for Reconstruction and Development Director for Serbia, underlined that EBRD promotes stock exchange transparency and will help Serbia resolve difficulties and discover legal loopholes that need to be fixed in order to have a successful IPO.

Participants of the gathering organized by the EBRD also discussed IPO advantages and existing legislation and regulations that yet need to be adopted in order to create an adequate legal framework for IPO.

Talking about hurdles for IPO implementation, the experts cited lack of rules that would provide for simultaneous sale of existing and newly issued shares and highlighted that the Law on Market in Securities and the Company Law need to be amended.