Alternative to lending
Entrepreneurs of SKR were told about how large companies can attract financing through the stock market instruments
The meeting with the heads of 50 major enterprises has been organized by the Chamber of entrepreneurs and investment company "Freedom Finance".
The topic was timely, since many large business entities, despite the fact that they thrive still need additional funding. Some funds are needed to expand production, the other - to modernize, and someone needs funding for implementation of new projects. Where do usually go for funding? Definitely, to the banks. Businessmen during the meeting were reminded of the alternative source, as public placement of shares on the stock exchange. As IPO will affect the development of the company and what are the advantages of attracting investments in the stock market, the organizers demonstrated by the example of one of Kazakhstan's enterprises - Aktobe plant of metal constructions. Shares of the plant will be sold during the second half of July 2016. The funds raised during the IPO will be used to reduce debt and to expand the production capacity of the plant. This will allow the company to attract new contracts and to participate in large infrastructure projects. In order to attract businesses to the stock market the representatives of the plant and JSC "Freedom Finance" shared information about the project, called the reasons for buying the company's shares.
The investment company believes that the entry of any company to the stock market improves its image among partners, customers as a reliable company doing business in accordance with the requirements of international financial reporting and accounting transparency.
General Director of JSC "Freedom Finance" Timur Turlov convinced that going public would be a competitive advantage and shareholders will be able to earn good money.
"Corporization of APMC will lift its status, make it more attractive for investors. And the attraction of investments - is the possibility of growth, the possibility of high-quality development, - said the shareholder of the plant Kairat Koylybaev.
"Today's topic - "How to attract financing through the stock market tools" is now particularly relevant when business often does not have access to financial resources, - noted the director of the Chamber of Entrepreneurs of South Kazakhstan region Askar Abubakirov. - We organized a dialogue platform for businesses to encourage our local production companies and to participate actively in this process. Since the benefits of the participation of small and medium-sized businesses in the IPO are obvious: first of all, it is an opportunity to get a relatively cheap capital to the extent necessary. In addition, there is no need to return the borrowed funds to investors. Entry to the stock market always earns favorable reputation for the company, creating an attractive image in the eyes of potential partners and customers".
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