How to attract funding without the use of debt loans and collateral? Answers to these questions of domestic entrepreneurs were given today at the site of NCE RK "Atameken"

Together with the Kazakhstani Stock Exchange (KASE) and JSC "Entrepreneurship Development Fund "Damu", the National Chamber held a training seminar on the topic "Stock market: new horizons for business".

In her welcome address, the Managing Director of NCE "Atameken" Alena Romanova noted that the training is held in the framework of the Memorandum of Cooperation signed between NCE RK "Atameken" and the Kazakhstani Stock Exchange (KASE) in April of this year. Earlier, similar explanatory meetings were held in all regions of Kazakhstan at the regional branches of the Chamber.

"The creation of favorable conditions for the release and activity of domestic entrepreneurs in the stock market - is our common task with KASE. We hope that the joint work of NCE "Atameken" and KASE will contribute to the development of the domestic stock market, the expansion of the investor base, raising capital for the operation and support of Kazakh companies. Under the memorandum, we conduct a series of activities aimed at the possibility of privatization through the stock exchange instruments, the expansion of state support mechanisms, including the introduction of subsidy coupon rate on the bonds on a par with bank credit under state programs", - said Alena Romanova.

She noted that at the seminars, the aim of which was to increase the financial literacy and to encourage enterprises to enter the stock market, was attended by about 180 domestic companies. Of these, about 40 have already expressed their interest on joining the KASE.

"The main task of training workshops KASE – is to inform the domestic small and medium-sized businesses about how stock exchange works, and how entrepreneurs can attract additional funding in the securities market. This seminar in Astana completes the learning cycle of the program, implemented in 2016 in all regions of the country, and the similar plan on outreach for businesses is already developed for a next year. Practice has shown the demand for advice and training meetings and exchange workshops for owners and management companies of Kazakhstan", - said Deputy Chairman of the Board of KASE Andrey Tsalyuk.

KASE also believes that "in a slowing of economic growth in Kazakhstan, it is very important to develop the stock market as an alternative source of economic growth, since most SME companies are experiencing difficulties with financing".

Andrei Tsalyuk stressed that one of the key reasons why the domestic companies do not go to the stock market, is their reluctance to reveal the information on the company. However, it is fundamentally wrong.

"The status of a public company, the disclosure of information about themselves - it is a certain protection for them. We position it this way. It is much easier to influence a company that no one knows than the one that was listed on the stock exchange and at which, there are few thousand shareholders - physical persons. Second, what we were talking about in the course of seminars, it's a habit to go to the bank for money. We have shown in a number of projects together with our partners, that you can get money without a loan. You can enter the market, to attract investors, the main thing – is to do it a right way. We must be honest, open, to have a good audit, then investors will believe. There is an investor base in Kazakhstan. I would venture to observe that no one is trying to attract huge money with the use of those technologies that are used all over the world. This is a task for the future", - he said.

As part of the seminar, the speakers presented the main stages of entering the stock market and the procedure for listing on the KASE. There was announced information about the stock market infrastructure and its basic elements, the conditions of finding the securities in the KASE official list, as well as the benefits of public company status and new obligations related to access to the stock exchange.

The speakers were representatives from companies such as IFC Kazakhstan (International Finance Corporation, a member of the World Bank Group), JSC "Freedom Finance", JSC "SkyBridge Invest", JSC "Centras Securities", JSC "Investment House "Astana Invest", LLP "PricewaterhouseCoopers", LLP "Law firm" UNICASE", LLP "Law firm "AEQUITAS".

Reference:

JSC "Kazakhstan Stock Exchange” (KASE) is the leading stock exchange in the Central Asian region and the only exchange in Kazakhstan, carrying out its activities in the financial market. This is a universal marketplace for repo market instruments, foreign currencies, government and corporate securities, bonds, international financial institutions, as well as derivatives.

KASE is a member of the International Federation of Exchanges (WFE), Federation of Euro-Asian Stock Exchanges (FEAS) and other international and national professional associations. In 2015, KASE has joined the UN initiative "Stock markets for sustainable development. "KASE takes the second place among the CIS exchanges for trading volume of securities trading, as well as among the top 5 on the stock market capitalization of FEAS stock exchanges.