TBILISI, DFWatch – Georgian Railway is nearer to going live on London Stock Exchange.
Georgia’s Economy Ministry confirms the listing, previously reported by DF Watch, and says the government currently is studying the situation on stock exchanges to make sure that there is an appropriate situation to place a non-controlling share of Georgian Railway on the international stock market.
“Not more than 25 percent of Georgian Railway will be placed on London Stock Exchange,” the statement says, adding that the government will retain a controlling share. Nothing will change in regards to management issues of the company.
There are securities of two Georgian companies on the international market. Those are recently placed shares of the Bank of Georgia and bonds of Georgian Oil and Gas Company.
According to Reuters, Georgian Railway will go live on May 24 and the total price of shares will be USD 200-250 million.
Earlier, Georgia’s Prime Minister Nika Gilauri said that Georgia isn’t in a hurry to place shares of large companies on London Stock Exchange as there is a very difficult situation on exchange markets.
But the situation changed compared to last year, he said, adding that Georgian government will continue consultations with partner international banks.
Georgia was planning to place shares of large state-owned companies on the international stock exchange market last year, but suspended the initiative temporarily, explaining it with bad conditions in the markets.