Armenian companies to pay $300,000 for joining IPO market

Armenian companies to pay $300,000 for joining IPO market
ARKA, 12.05.2009

Armenian companies have to pay maximum $300,000 for joining IPO market, Armen Melikyan, general director of NASDAQ OMX Armenia Stock Exchange, said Sunday at a regular meeting of IT area key figures in Aghveran.

He justified the sum saying that companies wanting to enter market have no audit, corporate right and financial reports.

“All the expenses will come back from the market, since potential investors are interested in putting their money in growing companies”, Melikyan said.

He said that to solve a problem with financial instruments, NASDAQ OMX signed an agreement with Armenian Government, which should promote the stock exchange’s activity in the country.

“Under the program, we proposed 70 legislative changes to support issuers and market players. We want to develop business, but can’t do it without particular companies”, Melikyan said adding that a proposal is sent to National Assembly to VAT preferences for those companies entering IPO market.

Such companies will pay 50% less profit taxes throughout three years and will have their VAT included in fees for auditors, consultants and lawyers for entering the stock exchange returned.

“Such changes constitute incentive for joining the market and also are focused on companies’ turnover enlargement ensured by transparent activity”, Melikyan said.

He also said that the stock exchange is open for everybody and offers consulting services.

More than that – to lower consulting services fees for companies, NASDAQ OMX Armenia and Central Depository offer free consulting for necessary paperwork.

According to Grant Thornton Amyot, IPO market entrance on London Stock Exchange will average 560 to 910 pounds, excluding 4 to 5 percent for broker services. M.V.-0-