The listing of the property management company "Rīgas namu pārvaldnieks" (RNP) on the stock exchange would allow the municipality to replenish its budget and increase competition in the market, this position was expressed to the LETA agency by the company's management.
The reduction or cessation of the Riga municipality's participation in RNP would be a logical and transparent step, based on both the norms of Latvian and European Union legislation and international practices of equal competition, the company's management believes.
As stated by the head of the public relations and marketing department of RNP, Inita Kabanova, independent experts examined several possible scenarios, analyzing legal, financial, and reputational aspects. Of all the scenarios, placing shares on the stock exchange would provide the greatest benefit for the Riga municipality, residents, RNP, and the entire national economy, Kabanova noted.
According to the company's management, this would primarily be an opportunity for the municipality to replenish its budget and free up resources for fulfilling other socially significant functions.
Listing shares on the stock exchange would help develop the national economy, attract foreign investors, and "heat up" the Latvian capital market, the company stated. It is emphasized that the placement of shares is a public and regulated process, and the management of the company would remain public and transparent.
"Thirdly, everyone will be able to become a co-owner. Fourthly, competition in the market will increase, ensuring better service quality and more competitive prices," RNP continues to list potential benefits.
As previously reported, the Riga City Council has prepared a draft decision on the sale of the municipality-owned company RNP through an initial public offering. To facilitate the sale of the shares of the capital company within the framework of a public securities offering, it is planned to reorganize RNP, transforming it into a joint-stock company.
According to the draft decision, it is initially planned to sell a controlling stake in RNP, offering 51% of the shares as part of a public offering and including them in the regulated securities market of the Baltic States, starting trading on the official Baltic stock exchange list. After the sale of the controlling stake, it is expected that the remaining equity will be sold.
To ensure broad investor and public engagement, it is planned that the public offering will also be addressed to private and individual investors, who will be offered to purchase up to 15% of the company's shares.
It is expected that the Riga municipality's participation in RNP will be completed: the municipality's decisive influence will cease no later than the end of 2027, and complete cessation of participation is planned by the end of 2028.
At the same time, the acting mayor of Riga, Vice Mayor Edvards Ratnieks (National Alliance), on Friday suspended the promotion of the draft decision on the sale of the municipality-owned LLC "Rīgas namu pārvaldnieks." He urges not to rush into such an important decision and has instructed to continue a thorough assessment of other scenarios.
Currently, RNP is fully owned by the Riga City Council. In 2024, its turnover amounted to 80.569 million euros, which is 8.55% more than in 2023, and profit reached nine million euros. RNP employs about 2000 people and manages approximately 3500 buildings.
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