Russia IPOs

By Ben Aris of bne in Moscow

Unless you live in Moscow and are in the retail business, you probably haven’t heard of Moskovsky Kreditni Bank (Credit Bank of Moscow, in English). But you may soon. A top-20 Russian bank, CBM is joining the increasingly long line of Russian companies that want to IPO on London’s stock exchange.

“We are contemplating an IPO, but have not decided on specific timing or plans,” CBM’s CEO, Vladimir Chubar, tells bne in an exclusive interview. “It depends on if the market improves, as the current valuation levels for Russian banks are not necessarily attractive. We are still growing, we have one of the lowest cost/income ratios and the return on equity of about 18-20% is one of the best in the sector. We feel like we are still quite a young bank and will wait for the right window of opportunity to open.” Read more

Russian IPOs have slowed of late. In contrast to 2007, when 32 Russian businesses listed on stock exchanges around the world, just five companies have floated in 2013.

Tinkoff Credit Systems, a credit card company, is the latest. It is the first to choose the London Stock Exchange this year as its place of trading. (Alrosa, the state diamond miner, intends to float but on the Moscow Exchange.) Read more

The Russians are coming: Alrosa, the state diamond miner, and Tinkoff Credit Systems both announced plans to go public this week and there is a long line of other Russian companies waiting to list. So as investors weigh up the all too familiar Russian risks, it’s worth tallying up how recent Russian IPOs have panned out. Read more

By Ben Aris of bne

With international equity markets in turmoil the timing of Luxoft’s IPO would seem to be poor. Add to that Luxoft is the international arm of leading Russian software developer IBS and Russian stocks are among the least popular in the emerging markets.

But Anatoly Karachinsky (pictured above), the founder and president of IBS says the crisis has actually been good for business. Read more

A contraction in Russian economic growth is taking a toll on consumer confidence. But while Russian shoppers are spending more carefully, it appears they can’t say ‘no’ to their kids. Detsky Mir, the country’s biggest children’s goods retailer, is anticipating a double-digit increase in revenues in 2013 for the second year in a row and is confident enough about the outlook to begin planning for an initial public offering. Read more

Alisher Usmanov, Megafon’s controlling shareholder, must be delighted with the decision to push ahead with the Russian mobile telephone operator’s initial public offering last November. Megafon shares – after reaching a record £28.68 on Thursday on the back of 2012 financial results – are now trading in London more than 44 per cent higher than at the time of the listing. Read more

The investment by China Investment Corporation in Friday’s flotation of the Moscow Exchange carries several messages for observers seeking to understand the investment approach of China’s sovereign wealth fund. Read more

Photo: Bloomberg

Russian initial public offerings have a tendency to flop. But not so that of the Moscow Exchange, the epicenter of the country’s financial markets.

Russia’s main stock market began trading on its own platform on Friday after raising Rbs15bn ($499m) in an IPO that organizers say was oversubscribed. Positive news and perfect timing: Vladimir Putin is hosting a meeting of G20 finance ministers in Moscow today where he will be flagging the merits of the Russian capital as a budding global financial center. Read more

By Ben Aris of business new europe

Kicking off the Russian IPO drive for 2013 is Russian rail freight company NefteTransService (NTS), with an announcement on Tuesday confirming its intention to list on the London Stock Exchange in the first half of this year.

Financial details have still to be settled but NTS is expected to sell a stake of around 25 per cent in a business with an estimated market value of around $2bnRead more

The London-Moscow Megafon IPO is back on track, with a whopping price tag and a keenly-awaited clarification of the ownership structure.

The Russian company, which postponed its offering last month, relaunched the issue on Thursday with plans to achieve a market capitalisation of up to $14bn and raise up to $2.1bn.

And it seems the ownership structure problems, which were publicised when the IPO was delayed, have been resolved – at least to the satisfaction of the British regulators. Read more

Alisher Usmanov, Russian oligarch and key Megafon shareholderBy Jonathan Guthrie

Russian companies remain keen on floating in London at a time when the market is shunned by other potential issuers. The downside is a tendency to cancel transactions, or to postpone them as Megafon did on MondayRead more

So MD Medical Group got away. But Promsvyazbank has not. The latest Russian London IPO has bit the dust after the shareholders decided they couldn’t get a decent price.

As the FT reported, the planned $400m offer was pulled late on Monday after a difficult month for Russian shares, which has seen the Micex index fall 5 per cent from its recent mid-September peak. Read more