IPO Pioneers: 9 in 10 listed Russian & CIS companies worth less today than at IPO

Following a disastrous year for the capital markets, only 8 of 92 companies from Russia and the CIS finished the year with a higher market capitalization than at their time of listing.

Vimpelcom, the first ever IPO from the region, has created and retained the most value since its NYSE listing in 1996 - up 1,066%.  The other 7 companies with an increase in market capitalization were Open Investments at 456%, Mobile TeleSystems at 407%, Lebedyansky at 93%, Wimm-Bill-Dann at 40%, Pyaterochka (X5 Retail) at 17%, Novorossiysk Commercial Sea Port at 14%, and Novatek at 6%.

PBN has released its annual IPO Pioneers survey of Russian & CIS IPOs profiling the 7 IPOs in 2008 from Russia, Kazakhstan and Ukraine, complete with listing data, offering trends and analysis of past CIS IPO performance.

PBN data also reveals that:

• Deals hit record lows in 2008 - only 7 companies from the CIS conducted IPOs in 2008, raising only $1.7bn, compared to 33 IPOs raising $34.3bn in 2007.
• 37 postponed & 11 cancelled flotations - a total of 48 companies withdrew their projected IPO plans due to market conditions.
• Flotations from consumer industries sustained their performance - the combined market capitalization of consumer companies increased by 0.6% from listing to the end of 2008, compared to decreases of 53% for energy companies, 58% for mining and heavy industry, 74% for agriculture, 78% for banking & finance, and 91% for real estate.
• Kazakh flotations most resilient in relative terms - since listing, the combined market capitalization of Kazakh companies fell by 50%, compared to 60% for Russian companies and 70% for Ukrainian companies.
• Renewed focus on London as the venue of choice - for those companies that braved the market in 2008, 73% of funds were raised by listing either on the London Stock Exchange Main Market or Alternative Investment Market.

It also identifies over 125  Russian and CIS companies as considering initial flotations, subject to market conditions.

The full report is available free online here.

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