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Et Resurrexit? The Return of the Russian Equity Offering
Posted on June 16th, 2009 Comments welcome Share/Save PrintAfter 10 months of drought, there are now signs of life in the market for Russian equity offerings.
In the first Russian placement since Acron’s $2.7 million LSE technical listing in August 2008, Alliance Oil raised $390 million - $265 million through the sale of convertible bonds and $125 million through the sale of new shares listed on NASDAQ OMX Nordic. Riding on the back of rising oil prices, Alliance, formerly known as West Siberian Resources, exceeded its $325 million target with its June 12 fundraising.
Coupled with the fact that Russia’s RTS Index is currently the world’s best performing big market, up 70% year to date, Alliance Oil’s success is seen by some analysts as a bellwether for additional Russian offerings. Pavel Malyi, Executive Director of UBS in Russia, told Reuters that investors are “warming up not only to the debt markets but also to equities. Alliance Oil is a green shoot and in the second half [of 2009] there will be further activity.”
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No Water, No Float – Russian Regulator Set to Revise Listing Rules
Posted on June 8th, 2009 Comments welcome Share/Save Print
By Trevor Barton, Senior Vice President & Managing Director - Europe, The PBN Company, London
Close your eyes and cast your mind back to the heady days of 2007 when Russian companies made the record books, topping the European IPO league table by raising a total of $29 billion. That year, Russia’s Sberbank and VTB were the world’s largest flotations of the year, raising $8.8 billion and $8 billion, respectively.
Then came the global credit crisis, and during 2008 the flood turned to a trickle. In 2009, the ground has been parched, and we have had to content ourselves with the hope that Russian IPOs on international exchanges will start flowing again once market conditions improve.
But will they? Not, it seems, if the Russian authorities have anything to do with it.
On June 3, Russian business daily Kommersant released details of draft regulations that stand to have a profound impact on the ability of Russian companies to conduct share placements abroad.
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Russia’s IPO Market: What the Experts Think
Posted on March 5th, 2009 Comments welcome Share/Save PrintPBN had an impressive array of investment bankers and capital markets experts at its launch today of IPO Pioneers 4, which was held at the Institute of Contemporary Development, a Moscow-based think tank. Here are some of their predictions and insights about capital market activities in Russia, Ukraine and the CIS: Read more »
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IPO Pioneers: 9 in 10 listed Russian & CIS companies worth less today than at IPO
Posted on March 5th, 2009 Comments welcome Share/Save PrintFollowing 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%.
Worth a Thousand Words ...
