The Committee on Financial and Administrative Affairs of the Riga City Council today supported the draft decision to initiate the process of selling the municipal enterprise SIA "Rīgas namu pārvaldnieks" (RNP) on the stock exchange.
Why do they need this? "We will become the first municipality in Latvia to prepare an enterprise for an IPO. From the perspective of the Riga City Council's reputation, a stock listing is considered the best solution. At the same time, for the enterprise, this will be an opportunity to continue development, expand operations, and improve service quality, which will benefit the residents," announced Elina Treija (National Alliance), head of the Committee on Housing and Environment of the Riga City Council.
The draft decision is planned to be adopted at the Riga City Council meeting, which will take place next Wednesday, February 25.
The preparatory process will be led by the Executive Director of the City of Riga, Janis Lange.
During the preparation stage, potential benefits and risks for the municipality, the enterprise, and the residents will be analyzed.
In order for the shares to be offered in a public securities placement, RNP needs to be reorganized into a joint-stock company.
The municipality asserts that the goal of privatization is not short-term profits, but sustainable development of the enterprise, improved management quality, and contribution to the development of Latvia's capital market.
