“The inefficiency of the IPO mechanism in Russian conditions” — Ruslan Mukhametshin’s comment for the special issue of “Kommersant” dedicated to SPIEF
Over the past few years, the number of IPOs of Russian companies has significantly decreased. In 2018, no domestic firm entered the stock market. According to experts, the companies postpone the placement due to underestimation of Russian assets and tightening of sanctions rhetoric.
In 2018, Russian companies did not hold any IPO. Experts believe that the matter is the unfavorable economic and geopolitical situation. According to the estimates of the Graduate school of management of St. Petersburg state University, only 11 Russian companies conducted IPOs from 2014 to 2018, and in the previous five-year period (2009-2013) — 40. The volume of attracted funds amounted to about $4 and $17 billion, respectively.
Ruslan Mukhametshin, head of consulting department of "Prime Advice":
Do we need an IPO at all, taking into account the emerging trend for the acquisition of controlling stakes in large companies by state banks or quasi-state structures? Most of the companies that placed their shares for the first time in 2017-2018, carried out the placement at the lower limit of the price range, which once again indicates the inefficiency of the IPO mechanism in the Russian conditions at the moment.
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