Principle theme

13 July 2010

London’s IPOs for Russia and CIS

Growing Russian companies show more and more interest IPOs, which has once again been illustrated last week  by the London Stock Exchange hosting  the “IPO Renaissance Conference: Russia and CIS” and organized IPO Analysis “Master Classes” for the companies in the critical phase of the IPO process and listed Russian and CIS companies, giving them the opportunity to learn more about the key CIS sectors represented on the Exchange and hear from advisors on recent capital markets transactions and IPO outlook for 2010/11. 

The conference, organised with the assistance of 16  major UK and foreign companies and banks, aimed at stimulating discussion and information exchange on recent capital market transactions and forthcoming IPOs for this year and 2011 from Russia, Ukraine, Kazakhstan and other CIS countries.  Over 30 companies attended the conference and one-on-one meetings with professional advisers, brokers and investors.

Exillon Energy PLC, an independent oil company with operations in Northern Russia, raised $100.7 million in December 2009. To date, over 100 companies from the region have had their shares or global depository receipts listed or traded in London where they have been able to access capital both at IPO as well as after.

Since 2005, Russian and CIS companies have raised approximately 57 billion dollars through the London Stock Exchange on the Main Market and alternative investment markets. Significantly, over the last six months, London listed issuers of global depository receipts from the CIS including Russia’s development and construction company LSR in May 2010 have raised close to 1 billion dollars in further raises, joining their regional peers on alternative markets who have collectively raised approximately 2.6 billion dollars in further issues since 2005. 

The London Equity markets continue to be a reliable source of capital for CIS companies, too. On 6 May 2010 Ukraine’s largest eggs producer Avangard became the latest to join our markets, raising 187 million dollars and demonstrating investor interest in CIS growth stories. Avangard was the eighth company from the CIS Agribusiness sector to join, further widening the diverse offering of investment opportunities available to London investors.

The conference programme was packed, offering the attendees an insight into the most complicated issues of IPO anatomy. 

Head of the Russian Nanotechnology corporation RosNano, Anatoly Chubais made a presentation about the developments on the Russian nano-markets and stressed the promising areas of investment in Russia’s modernization.

It is too early to speak about the results of the conference, but no one can say that there is little interest abroad in investments in our economy.

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