Riga, Dec 12 (LETA) - Listing the shares of the municipal housing manager Rigas Namu Parvaldnieks (RNP) on the stock exchange would allow the municipality to supplement its budget and increase competition on the market, the company told LETA.

Reducing or discontinuing the Riga municipality's participation in RNP would be a logical and transparent step, based on both Latvian and European Union legislation and international practice on equal competition, according to the exceptional management.

According to Inita Kabanova, Head of Public Relations and Marketing at RNP, independent experts have assessed several possible scenarios, analyzing legal, financial and reputational aspects. Among several scenarios, listing the shares on the stock exchange would bring the most significant benefits to the Riga municipality, residents, RNP and the national economy, Kabanova said.

In the view of the company's management, first, it would be an opportunity for the municipality to supplement its budget, freeing up its resources to provide other important functions for the community.

Listing shares on the stock exchange would be an opportunity to improve the national economy, attract foreign investors, as well as "warm up" the Latvian capital market, the company said in a statement, stressing that listing shares on the stock exchange is a public and regulated process and that the management of the company would continue to be public and transparent.

"Anyone will be able to become a co-owner. There will be more competition in the market, which will ensure better quality of service and more competitive prices," the RNP continued.

As reported, the Riga City Council has prepared a draft decision to sell the municipally owned RNP by floating it on the stock exchange. In order to ensure the sale of the company's shares in a public offer, RNP is to be reorganized into a joint-stock company.

AInitially, it is planned to sell a majority stake in RNP by making a public offer for 51 percent of the company's shares and listing the majority of the shares on the Baltic regulated securities market and starting trading on the Baltic Main List.

After the majority shares have been sold, it is planned to sell the remaining shares.

In order to ensure a broad participation of investors and the public, it is envisaged that the public offer will also be made to retail investors and individual investors, offering them to acquire up to 15 percent of the shares of the company.

It is envisaged that the participation of the Riga municipality in RNP will be terminated by ending the decisive influence of the municipality in the company by the end of 2027 at the latest, and by ending the participation completely by the end of 2028.

At the same time, Riga Acting Mayor, Vice Mayor Edvards Ratnieks (National Alliance) on Friday suspended the adoption of a draft decision on the sale of RNP, Ratnieks' adviser Inese Ozolina informed LETA.

Ratnieks called against rushing such an important decision for the residents of Riga and instructed continuing to carefully weigh other scenarios for RNP.

"The matter has not yet been sufficiently discussed to be taken forward. At the moment, the proposal to list 51 percent of the company's shares on the stock exchange is only one of the possible scenarios, which is being promoted by RNP itself with the involvement of an expert," Ratnieks said.

In his opinion, all possible scenarios need to be properly assessed in order to be in the interest of the municipality and the residents of Riga.

RNP 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 earned EUR 9 million. RNP employs around 2,000 people and manages around 3,500 buildings.