The Privately Traded Whirlpool Of The South Caucasus

When we talk about stock exchanges, big extravagant trading strategies, months of preparation, and billions of dollars in revenue, we don’t really think about companies in Eastern Europe, do we? Well, good on that because there’s no such thing in the region we are about to discuss, even though it does have some publicly traded companies.

The South Caucasus region consists of 3 countries: Georgia, Armenia, and Azerbaijan. All 3 of these countries have their own focuses and valued industries, but not all of them are equally successful.

Georgia, for example, completely focuses on its tourism industry, therefore taking one of the biggest hits in the recent pandemic. Azerbaijan clings to its oil reserves, building most of its economy around what it currently has and Armenia is very heavy on the agricultural side of the industry as well as energy production.

Georgia is arguably the only country out of these 3 that did not model its economy around the remnants of the Soviet Union. Armenia is currently benefiting from dozens of old Thermonuclear power plants left behind by the Soviet Union after it fell apart, while Azerbaijan had to do very little in terms of oil production as almost everything was already set up.

Georgia on the other hand can only rely on its amazing nature and massive export of wine. But, for some reason, this country has all the wrong companies listed on exchanges which we are about to discuss.

As soon as we’ve mentioned the general idea of the public market in Georgia, we will move on to the privately held companies which are quite surprising.

Only a few companies on the exchange

In order to remain as fair as possible, we need to discuss the number of Georgian companies listed by stock exchanges outside of Georgia. There are 2 companies that come to mind immediately. These are TBC Bank and Imedi L.

The first is, obviously a bank while the other is an insurance company. These two companies are arguably the most traded among the 138 shares featured on the Georgian exchange, which kind of throws every perception of the country’s economy into jeopardy. A country of 3.7 million people would not necessarily resonate with so many financial products to a point that they would find themselves on the London stock exchange, right? Well, it’s reality.

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