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IPOs resume in Russia

Credit: Grigory Sysoev | RIAN

As many as three Russian companies may hold IPOs on the Moscow Stock Exchange in 2019, Forbes reports.

This means initial public offerings will be resumed in Russia after a twelve-month break – not a single Russian company went public in 2018. In 2017, three companies floated shares on the Moscow Stock Exchange – Detsky Mir, Obuv Rossii and Globaltruck. The names of the companies planning to issue shares this year are yet unknown, but potential candidates include Sibur, the European Medical Center and Sovcombank, Forbes said. Other possible new issuers are Sberbank and UBS. However, according to Forbes’ sources, their IPO plans can still be canceled in the event of an “escalation of the sanctions race.”

“Sibur plans to raise several billion dollars based on a total valuation of its business at $20-26 bln. The most important reason for issuing shares is the launch of a major project, Sibursk, by its Tobolsk Zapsibneftekhim plant,” the media reported in 2018.

According to earlier announcements, the possible value of the European Medical Center’s share issue is RUR 7-8 bln ($106-120 mio), and Sovcombank, $300 mio.

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