Page 9 - RusRPTFeb22

2.2 Russia’s IPO market set records in 2021
The Russian IPO boom in 2021 and was not in vain and led to a multi-year record: issuers raised $3.7bn during initial placements, the highest figure since 2011, RBC writes, citing data from the analytical company Refinitiv.
The largest IPO of the year was the Fix Price chain of economy stores, which received $1.77bn, analysts said in a review. Largely due to him, the retail sector showed the best financial results during placements. However, it is worth noting that since the IPO, Fix Price has fallen by 42%.
In second place is the initial placement of one of the largest Russian chains of clinics - the European Medical Center, which raised $500mn. In third place is the timber holding Segezha Group, controlled by AFK Sistema Vladimir Yevtushenkov. He raised 30bn rubles.
In general, the amount of equity capital attracted by Russian companies last year decreased by 6%, to $7.4bn. Primary placements accounted for more than half of this amount.
Grigory Ostrovsky, senior portfolio manager at Sber Asset Management, noted in a conversation with RBC that the Moscow Exchange index rose by 15% in 2021, showed growth above 20% during the year, which stimulated investor interest in the equity capital market - this allowed many companies to spend IPO on favorable terms.
The growth of IPO indicators was influenced by pent-up demand and deferred placements, Viktor Dima, director of the stock market analysis department at Aton investment company, told the publication. Strong markets, which were good enough for an IPO, also had an impact, he notes, and investors also had an appetite “for new stories, including Russian ones.”
The Wall Street Journal wrote that 2021 promises to be the largest listing of Russian companies since at least 2014, marked by international sanctions. The situation was affected by growth in international markets and the recovery of the Russian economy, the newspaper pointed out. Reuters wrote that Russian companies lined up for the placement of shares thanks to the recovery of the Russian market after Western sanctions.
The IPO market last year could have become even larger - many other companies considered the exchange listing, in particular, Vkusvill, Delimobil, Mercury Retail Group (owner of the Krasnoe & Beloe network). But for one reason or another, they postponed their plans.
The fact that this year will somehow be able to compete with the last IPO seems doubtful so far. The beginning of 2022 was far from the most prosperous for the Russian market: due to geopolitical risks — difficult negotiations with the United States and NATO are still on the agenda — it has undergone the strongest collapse since the spring of 2020.
9 RUSSIA Country Report February 2022 www.intellinews.com