RIGA, Feb 26 (LETA) - The Riga City Council on Thursday decided to start a preparatory process for the listing of Rigas Namu Parvaldnieks (RNP) housing manager's shares.

The decision of the Riga City Council stipulates that the preparatory process will be led by Riga City Executive Director Janis Lange, who will be tasked with attracting an arranger for the initial public offering (IPO) of RNP shares.

The preparatory phase will include the company's legal, financial and corporate governance assessment, as well as an analysis of the potential benefits and risks for the municipality, the company and residents, LETA was informed. The Riga City Council will make the final decision on the IPO and its initial conditions once the preparation strategy has been developed.

In order to launch the IPO, RNP must be transformed into a joint stock company.

As reported, the Riga City Council plans to launch a tender procedure for an independent, professional and experienced IPO arranger. The winning candidate will carry out a comprehensive valuation of RNP, develop the most effective IPO strategy and arrange the IPO process.

Riga Vice Mayor Edvards Ratnieks (National Alliance) said earlier that it is not a question of a specific amount of shares to be sold, but of responsible and careful preparation.

"Our goal is to develop an IPO model that balances the interests of the municipality as a shareholder with the interests of the residents of Riga for better quality services and transparent governance," Ratnieks said.

According to the recommendation of advisers from the law firm Sorainen, going public could be the most transparent way for the municipality to transfer its RNP shares to private investors.

RNP, a housing management company, is currently wholly owned by the Riga City Council. Its turnover in 2024 was EUR 80.569 million, an increase of 8.55 percent compared to 2023, and the company made a EUR 9 million profit. RNP employs around 2,000 people and manages around 3,500 buildings.