At the "Scaling Up: Getting Uzbek Companies Ready for IPO" conference held on February 27, 2025, in Tashkent, Konstantin Golota, IR Director of Enera Group, shared invaluable insights on the key elements needed for a successful Initial Public Offering (IPO). Golota emphasized that beyond a strong financial foundation, companies must have a clear strategic direction to ensure success in entering the stock market.
According to Golota, a comprehensive approach is essential to attracting investors. Transparency, financial reporting, and a high-quality corporate culture are crucial for instilling confidence in potential shareholders.
"Going public is not just a financial process; it is a long-term strategy that requires maximum readiness and transparency," he explained. "Companies need to not only raise funds but also have a clear vision of how these funds will be used to drive growth and development."
Golota stressed the importance of early preparation for an IPO, which many companies fail to recognize.
"Many companies start thinking about preparing for an IPO too late," he noted. "But in reality, it is a marathon, not a sprint. Companies must establish their internal structure, ensure transparency, and streamline their financial reporting well ahead of time."
Golota emphasized that corporate culture is a key component of the IPO process. He explained that a public company is not just about financial reporting, but also about management culture and investor relations. Being open and accountable to all stakeholders is essential, beyond just accounting.
People's IPO: Myths and Reality
One of the key topics discussed at the conference was the concept of a "people's IPO," where a company's shares are offered to the general public. While this practice has gained traction in countries with emerging capital markets, it raises questions among experts, including Golota.
He expressed his views on the potential benefits of a people's IPO in Uzbekistan, suggesting that it could be an effective way to expand the investor base. However, he pointed out the need for a strong educational initiative to ensure people understand the nature of investing in stocks.
"In Uzbekistan, a people's IPO could be an important tool to attract investors," he said. "But it requires a quality educational process. People need to understand that investing in stocks is a long-term commitment, and the risks should also be clear from the start."
How to Prepare a Company for an IPO: Expert Opinions
Experts at the conference agreed that preparing for an IPO requires extensive groundwork long before the actual share placement process begins. Golota and other specialists emphasized that companies need to improve and streamline their reporting practices, ensuring it is transparent and easily understood by investors.
A successful IPO is built on a foundation of strategic planning, transparency, and an unwavering commitment to corporate responsibility. As Golota reiterated, a public company is not just about financial growth—it's about fostering trust and accountability at every level.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)