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PART OF EXPENSES ON HOLDING OF IPO BY LOCAL COMPANIES TO BE RECOMPENSED
ArmInfo
2009-09-24 18:32:00
ArmInfo. The changes to the Law give an opportunity to the local
companies, wishing to hold initial public offering (IPO) and pass a
listing at NASDAQ OMX Armenia, to avail of the tax exemption during the
next three years: the size of the profit tax they pay will be reduced
by 50% but to the amount not exceeding 300 mln drams a year. The
changes to the Law envisage return of the VAT these companies paid for
the audit, consulting, legal, information, marketing and other services
required for performance of IPO and successful listing procedure. To
note, the changes to the Law and took effect in July, 2009.
When commenting on these changes, Director General of NASDAQ
OMX Armenia Armen Melikyan told ArmInfo that the essential part
of expenses on performance of IPO and the listing procedure
by the local companies will be recompensed due to use of tax
exemptions. Exemplifying the company, which needs full reformation
aimed at preparation for entry in the capital market, in particular,
implementation of up-to-date standards and principles of corporate
management, use of the international financial reporting standards,
conduct of a financial and legal audit, creation of subdivisions on
interrelations with investors, and many other measures, A. Melikyan
said the expenses for IPO performance by issuers may reach $300,000.
According to A. Melikyan, if, during initial public offering of
his shares, the issuer plans to attract no more than $1 mln from
the market for implementation of any project, it is inexpedient to
conduct IPO and listing and shares from the financial viewpoint. The
companies with more ambitious future plans need the IPO. Along with it,
A. Melikyan assured that 80% of expenses for the preparatory work on
the listing procedure are non- recurrent at the stock exchange. The
expenses will further reduce and the company will make just fixed
payments for maintenance of the listing.
As for a possible agiotage among the potential issuers in view of the
changes made, the director general said that entry of NASDAQ OMX in
Armenia was accompanied by growth of the foreign investors' interest
in the Armenian capital market. However, against the background of
the global financial and economic crisis, the participants in this
market, in particular, the foreign investors suffered from that,
are still engaged in solution of their problems.
As the situation in the world markets improves, inflow of foreign
investors into the Armenian market capital will resume, as the
developing markets are much more attractive than the developed ones,
in view of a possible high profit-making. , A. Melikyan said.
ArmInfo
2009-09-24 18:32:00
ArmInfo. The changes to the Law give an opportunity to the local
companies, wishing to hold initial public offering (IPO) and pass a
listing at NASDAQ OMX Armenia, to avail of the tax exemption during the
next three years: the size of the profit tax they pay will be reduced
by 50% but to the amount not exceeding 300 mln drams a year. The
changes to the Law envisage return of the VAT these companies paid for
the audit, consulting, legal, information, marketing and other services
required for performance of IPO and successful listing procedure. To
note, the changes to the Law and took effect in July, 2009.
When commenting on these changes, Director General of NASDAQ
OMX Armenia Armen Melikyan told ArmInfo that the essential part
of expenses on performance of IPO and the listing procedure
by the local companies will be recompensed due to use of tax
exemptions. Exemplifying the company, which needs full reformation
aimed at preparation for entry in the capital market, in particular,
implementation of up-to-date standards and principles of corporate
management, use of the international financial reporting standards,
conduct of a financial and legal audit, creation of subdivisions on
interrelations with investors, and many other measures, A. Melikyan
said the expenses for IPO performance by issuers may reach $300,000.
According to A. Melikyan, if, during initial public offering of
his shares, the issuer plans to attract no more than $1 mln from
the market for implementation of any project, it is inexpedient to
conduct IPO and listing and shares from the financial viewpoint. The
companies with more ambitious future plans need the IPO. Along with it,
A. Melikyan assured that 80% of expenses for the preparatory work on
the listing procedure are non- recurrent at the stock exchange. The
expenses will further reduce and the company will make just fixed
payments for maintenance of the listing.
As for a possible agiotage among the potential issuers in view of the
changes made, the director general said that entry of NASDAQ OMX in
Armenia was accompanied by growth of the foreign investors' interest
in the Armenian capital market. However, against the background of
the global financial and economic crisis, the participants in this
market, in particular, the foreign investors suffered from that,
are still engaged in solution of their problems.
As the situation in the world markets improves, inflow of foreign
investors into the Armenian market capital will resume, as the
developing markets are much more attractive than the developed ones,
in view of a possible high profit-making. , A. Melikyan said.