On October, 6th the Moscow Interbank Currency Exchange transferred JSC North-West Telecom’s common shares from the category of low liquid shares into the category of liquid shares. The change took place, as the requirements of Moscow Interbank Currency Exchange for liquid shares were met on the basis of the stock exchange trading in the 3rd quarter 2004.
To increase the liquidity of its shares, in early October North-West Telecom JSC made an agreement of market making with IC Energokapital.
Commenting on the choice of the market maker, Nikolay Bredkov, Deputy General Manager - Corporate Management Director of North-West Telecom JSC, said: “We have held talks with a number of professional participants of the stock exchange market and, proceeding from the proposed conditions, we chose the proposal of IC Energokapital, which suggested the most profitable cooperation terms. The increased number of trading venues where market players can freely make transactions with our securities is a part of North-West Telecom’s strategy of improving the Company’s liquidity and capitalization. Later, we are going to ensure access to the trading in NWT’s shares in western stock exchanges, which will lead to a keener interest among non-residents.”
According to Artyom Konin, Deputy General Manager of IK Energokapital, “It will be interesting for us to work with securities of a major issuer in the North-western region. Today, regional telecoms are booming - there is a demand for the securities. As a result of affiliation of other communication operators of the North-western Federal District, NWT will get a good synergy effect. The company is showing good results in its operation and its shares, without doubt, deserve a place in the portfolio of any competent investor”.
The community of investors is appreciating the measures taken to increase NWT’s shares liquidity. “In our opinion, entering the Moscow Interbank Currency Exchange will have a favourable effect on the dynamics of JSC North-West Telecom’s shares, as this will make it possible to increase the liquidity of company’s shares and to expand the circle of investors. A bright positive example is the Sibirtelecom company, whose entrance to Moscow Interbank Currency Exchange has significantly increased the company’s liquidity and has become one of the reasons why its capitalization has increased,” Olga Zhilinskaya, telecommunication analyst of Renaissance Capital comments the event..
At the moment, NWT’s shares in the form of 1st level ADR have been allowed for circulation in the US over-the counter market. All in all, about 4.9% of company’s common shares have been converted into ADR. In the Russian market the shares have been allowed or trading at RTS, Moscow Interbank Currency Exchange, Supervisory Board and SPFB.