The head of the National Securities and Stock Market Commission announced discussions about allowing the free sale of 7% of shares in profitable state-owned enterprises, such as PrivatBank, Naftogaz, and Energoatom. This concerns both banks and energy companies. The initiative aims to attract internal investment and kick-start the development of Ukraine's stock market.
If implemented, the shares will likely be sold on a local stock exchange, such as PFTS, or possibly via new infrastructure. Conducting IPOs is technically feasible, given government access to digital technologies. This move is expected to attract both businesses and individual Ukrainian investors, setting an example for future privatizations.
Experts highlight certain challenges: selling just 7% leaves minority shareholders without proper influence or protection, and issues of corporate governance and trust in the market remain. Still, even a partial share sale could increase economic engagement and government accountability towards investors.
The Commission head previously criticized major Ukrainian companies, like Kyivstar, for turning to foreign stock exchanges instead of developing the domestic market, emphasizing opportunities for growing Ukraine’s own stock exchange. Selling stakes in state-owned companies internally could strengthen trust and attract both institutional and retail investors.
The final decision regarding the mechanism, participating companies, and exchange infrastructure remains undecided. Experts note that full privatization requires strong investment funds and potentially foreign capital. Nevertheless, the fact that such initiatives are being actively discussed is a positive signal for the capital market.
Developing the local stock market will allow citizens to invest legally in national companies and help foster an investment culture in Ukraine.
