More than 20 capital companies and their possible participation in the capital market have been evaluated

After the project of synchronizing the Baltic electricity system with continental European power grids is completed in cooperation with the other operators of the electricity transmission system of the Baltic States, a partial listing of JSC “Augstsprieguma tīkls” will be considered, prior to making relevant amendments to the regulatory acts.

At the press conference after the government meeting, Finance Minister Arvils Asheraden (JV) said that the government has agreed to return to the stock exchange at the end of 2025 on the issue of moving the shares of the “High Voltage Network” part.

Asheraden also added that the investment plans of “High Voltage Network” envisage investments of 500 million euros, the company has a very good capitalization, so it could arouse the interest of large institutional investors – pension funds.

It is expected that the issue of SIA “Latvijas mobilais telefons” and SIA “Tet” will also be on the agenda of the government. Likewise, the government should also make decisions about the need for the initial public offering of “Latvijas pasta”, in the context of an updated evaluation of capital and financing attraction in accordance with the company’s current strategy.

Among the capital companies of the Riga municipality, SIA “Rīgas ūdes”, which is planning a bond issue in 2025-2026, and SIA “Rīgas namu pravādvards” with an initial public offering could enter the stock exchange.

Also, the government highly appreciates the fact that more and more private companies view the participation in the capital market as a good alternative for attracting funding, because only the state, together with the private sector, will manage to ensure that the capital market develops and contributes to the sustainable development of the Latvian economy. FM points out that the work on the development of the capital market is not limited only to state and local government companies and the listing of their shares in the stock exchange. The operation of the support program is still ongoing to provide support to those companies that are preparing to participate in the stock exchange, as well as the work on the creation of the IPO fund will be completed in the near future.

The report contains conceptual decisions on the possibilities of attracting private capital. On the other hand, the conditions of the initial public offering, including the possible price or its amplitude, are determined in the issue prospectus, which will later be developed separately for a specific company and approved by the Bank of Latvia.

In the future, relevant issues related to the state-owned capital company, which are headed for the initial public offering, are expected to be discussed in the Coordination Council of Large and Strategically Important Investment Projects.