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Estonian gov’t approves IPO of state-owned Port of Tallinn next year

The Estonian government approved Thursday preparations for the initial public offering (IPO) of the shares of the state-owned Port of Tallinn (Tallinna Sadam), the biggest port authority of the country.

According to the plan, trading with the shares of Tallinna Sadam on the Nasdaq Tallinn Stock Exchange will become possible in the first half of the next year. A third of the shares of the company will be traded publicly and a controlling holding will be retained by the state, said the Estonian government in a press release.

“The purpose of the stock exchange launch of Tallinna Sadam is to grow the value of the company and to create investment opportunities for the Estonian public and the pension funds,” Estonian Prime Minister Juri Ratas was quoted as saying in the press release.

He added that increasing Estonia’s attractiveness for foreign investors is also very important for the Estonian government, expressing the belief that “the shares of Tallinna Sadam will be a great opportunity for our partners in Europe and the Nordic countries in particular to invest into Estonia”.

“The more shareholders there is, the more it motivates the company to even greater transparency and efficiency, therefore growing the company value,” said Kadri Simson, Estonian Minister of Economic Affairs and Infrastructure.

She added that selling part of the Tallinna Sadam holding makes it possible for the people of Estonia to be a part of it.
The IPO of Tallinna Sadam, one of the largest port enterprises of the Baltic Sea, will raise awareness of the company, enable to invest greater volumes of pension money to the home market, activate the stock exchange and build Estonia’s reputation as a successful investment environment, according to Simson.

The step follows the course outlined in the Estonian coalition agreement signed by the Center Party, the Social Democrats, and the Pro Patria and Res Publica Union (IRL) a year ago, it was reported.
Source: Xinhua

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