going public in russian securities market
Download
Skip this Video
Download Presentation
Going Public in Russian Securities Market

Loading in 2 Seconds...

play fullscreen
1 / 19

Going Public in Russian Securities Market - PowerPoint PPT Presentation


  • 118 Views
  • Uploaded on

Going Public in Russian Securities Market. Alexei Rybnikov CEO MICEX Stock Exchange. IPO for Russian Issuers: Pros and Cons. Benefits of going public Ability to raise capital rapidly when needed acquisition currency liquid market for the company ’ s stock expanding shareholder base

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Going Public in Russian Securities Market' - arvid


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
going public in russian securities market

Going Public in Russian Securities Market

Alexei Rybnikov

CEO

MICEX Stock Exchange

ipo for russian issuers pros and cons
IPO for Russian Issuers: Pros and Cons

Benefits of going public

  • Ability to raise capital rapidly when needed
    • acquisition currency
    • liquid market for the company’s stock
    • expanding shareholder base
  • Strengthening balance sheet to support future growth
  • Increases valuation (reduces illiquidity premium)

The dark side of IPO

  • Losing full control of the process – market dictates final outcome
  • Underpricing - market price may not reflect true value of the firm
  • Focus shift – from long-term to short-term goals
choice of venue issuer perspective
Choice of Venue: Issuer Perspective

Factors to consider:

  • Deal size
  • Target investor base
  • Critical mass of liquidity
  • Legislation
  • Cost
  • Story
choice of venue issuer perspective1
Choice of Venue: Issuer Perspective

Factors to consider:

  • Deal size – up to US$ 500 million
  • Target investor base - mix of buy-and-hold and active traders
  • Critical mass of liquidity – at all times
  • Cost – at issuance and maintenance
  • Story – compelling
a critical need
A CRITICAL NEED

Domestic Market

micex group the national financial infrastructure
MICEX Group: the national financial infrastructure

St.-Petersburg

Novosibirsk

N. Novgorod

Moscow

Samara

Rostov-on-Don

Yekaterinburg

Vladivostok

domestic market in figures
Domestic Market in Figures
  • MICEX Stock Exchange’s share in Russian stock market turnover exceeds 85%
  • Turnover in 2005 reached US$ 225,6 bln, 49,2% increase over 2004
  • Volume of transactions in Jan-Feb 2006 - US$ 69,6 bln, 3,4 times over Jan-Feb 2005
micex stock exchange start in gazprom
MICEX Stock Exchange:Start in Gazprom
  • MICEX SE trading volume is over 41% of the total market
micex stock exchange cash equities
MICEX Stock Exchange: Cash Equities
  • 294 securities of 185 issuers traded
  • 50equities of 34 issuers listed, including all blue chips
  • 2005 equities trading volume reached US$ 141,8 bln, 30,6% increase over 2004
  • Volume of transactions with equities in Jan-Feb 2006 - US$ 49,6 bln, 4 times over Jan-Feb 2005
micex stock exchange corporate and regional bonds
MICEX Stock Exchange: Corporate and Regional Bonds
  • 375 bonds of 262 issuers traded
  • US$ 24,2 bln (par value) total outstanding
  • 114 bonds of 67 issuers listed
  • 2005 turnover in bonds reached US$ 83,8 bln, 2 times over 2004
  • Volume of transactions with corporate and regional bonds in Jan-Feb 2006 - US$ 20 bln, 2,4 times over Jan-Feb 2005
corporate bond market proxy for ipos
Corporate Bond Market: Proxy for IPOs
  • Market value of corporate bonds has grown 6,2 times during 2003-2005
  • Market value of corporate bonds in Jan-Feb 2006 has increased by 28,1% to 12,3 bln USD
  • The biggest issuers of bonds (in terms of nominal value):
    • RZhD – 1.17 bln USD
    • Gazprom – 0.89 bln USD
    • Vneshtorgbank – 0.71 bln USD
russian legislation regulation recent developments 2005 2006
Russian Legislation & Regulation:Recent Developments (2005-2006)
  • More issuer & investor friendly
  • Shorter IPO cycle
  • 30% rule
  • RDR
  • Transparency
  • Corporate Governance
  • Investor Protection
  • National Infrastructure
future prospects
Future Prospects
  • Market is Ready
  • Infrastructure in Place
  • Regulation Inviting
  • Next Steps:
    • Dual Listings
    • Strategic Cooperation & Partnerships
    • Real Working Mechanisms
contacts
Contacts
  • Address: 13, B.Kislovskiy per., Moscow, 125009, Russia
  • Telephone: (+7 095) 234-4811
  • Fax: (+7 095)705-9622
  • E-mail: [email protected]
  • Web-server: www.micex.com
ad