Ukraine considers free sale of part of shares in PrivatBank and Naftogaz – Magomedov
Photo: press service of the NSSMC

The National Securities and Stock Market Commission is considering the idea of putting some shares of large profitable state-owned companies that pay dividends up for free sale. This was stated by Ruslan Magomedov, chairman of the NSSMC during the press conference "20 years of non-state pension provision in Ukraine: victories, defeats and a chance for a breakthrough" at Ukraine Crisis Media Center.

According to him, we are talking about about 7% of shares in state-owned companies that are now fully owned by the state.

Magomedov said that the idea is currently only at the discussion stage. It is planned that shares of recognizable companies, such as state-owned banks or energy sector enterprises, will be put up for free sale.

Among the possible candidates he named PrivatBank, Naftogaz of Ukraine and Energoatom.

"This will be the first step towards the formation of a market segment where businesses will see that the mechanism really works: by issuing an instrument – shares or corporate bonds – you can raise a certain amount of money."magomedov noted.

Thus, according to him, the initiative aims to expand the range of investment instruments in Ukraine and create a benchmark for business.