Magomedov proposes "people’s IPOs" for Ukrainian state-owned companies

Ruslan Magomedov, chairman of the National Securities and Stock Market Commission, has proposed launching "people’s IPOs" of successful state-owned companies by offering 7% of their shares on the stock exchange. He announced the initiative at the Kyiv International Economic Forum.

"For those who want to invest in risky instruments, Ukraine currently offers nothing. And that's why we seem to be pushing everyone into crypto, which, of course, is a modern tool, but it does not bring anything to the economy," he said.

According to Magomedov, the funds raised from the sale of shares would be directed toward company development and overall economic growth.

He suggested listing 7% of shares, which is more than 5%—the threshold that removes the risk of a squeeze-out (a forced buyout of minority shareholders)—but less than 10%, allowing the state to retain full control of the enterprises.

"The ultimate goal is to create conditions for 5 million investors in securities to appear in Ukraine in three years after the launch of this project. Today, there are less than 100,000 in government bonds — I don't want to lie, but I'll guess — there are less than 100,000," Magomedov said.

Among the companies that could participate in the "people’s IPOs," Magomedov named PrivatBank and Naftogaz of Ukraine, describing them as well-known and stable performers, even during wartime.

Alongside the people’s IPOs, individual investment accounts (IRAs) should become another key instrument for market development. Together, these two tools, Magomedov said, could trigger a "big bang" that revitalizes Ukraine’s stock market and enables the next stage of the pension system — the funded tier.

• In February 2025, Magomedov stated his goal to develop the stock market by the end of February 2027, ensuring that Ukraine has at least five prominent securities issuers.
• In December 2024, Danylo Hetmantsev, chairman of the Verkhovna Rada Finance Committee, warned that Ukraine’s stock market is deteriorating, with only 1,600 public companies remaining in the country.