During the process of forming the new government, there was a public clash over whether it is necessary to list up to 20% of state-owned company shares on the stock exchange. How should this idea be evaluated? Who would gain and who would lose from such a step? What does it mean for LVM?

The short answer is: as the owner – namely, the Republic of Latvia – decides, so it shall be. To begin listing shares on the stock exchange, a company must be super-healthy and highly desirable from the perspective of potential investors – share buyers. Theoretically, LVM has the capacity to carry out an IPO on the stock exchange, but there is neither a technical nor an economic need for it. However, as former Prime Minister Ivars Godmanis used to say, there are several BUTs. As the head of the company, I believe this issue must be very carefully evaluated. Classically, the goal of going to the stock exchange is to raise capital, especially if a company is planning large-scale expansion, or the second situation, where the owner or owners wish to enjoy the fruits of their labour and sell their shares at market price.