1 / 19

Going Public in Russian Securities Market

Going Public in Russian Securities Market. Alexei Rybnikov CEO MICEX Stock Exchange. IPO for Russian Issuers: Pros and Cons. Benefits of going public Ability to raise capital rapidly when needed acquisition currency liquid market for the company ’ s stock expanding shareholder base

arvid
Télécharger la présentation

Going Public in Russian Securities Market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Going Public in Russian Securities Market Alexei Rybnikov CEO MICEX Stock Exchange

  2. IPO for Russian Issuers: Pros and Cons Benefits of going public • Ability to raise capital rapidly when needed • acquisition currency • liquid market for the company’s stock • expanding shareholder base • Strengthening balance sheet to support future growth • Increases valuation (reduces illiquidity premium) The dark side of IPO • Losing full control of the process – market dictates final outcome • Underpricing - market price may not reflect true value of the firm • Focus shift – from long-term to short-term goals

  3. Choice of Venue: Issuer Perspective Factors to consider: • Deal size • Target investor base • Critical mass of liquidity • Legislation • Cost • Story

  4. Choice of Venue: Issuer Perspective Factors to consider: • Deal size – up to US$ 500 million • Target investor base - mix of buy-and-hold and active traders • Critical mass of liquidity – at all times • Cost – at issuance and maintenance • Story – compelling

  5. A CRITICAL NEED Domestic Market

  6. MICEX Group: the national financial infrastructure St.-Petersburg Novosibirsk N. Novgorod Moscow Samara Rostov-on-Don Yekaterinburg Vladivostok

  7. Domestic Market in Figures • MICEX Stock Exchange’s share in Russian stock market turnover exceeds 85% • Turnover in 2005 reached US$ 225,6 bln, 49,2% increase over 2004 • Volume of transactions in Jan-Feb 2006 - US$ 69,6 bln, 3,4 times over Jan-Feb 2005

  8. MICEX Stock Exchange: Stock Market Up-and-Coming

  9. MICEX Stock Exchange:Liquidity Growth

  10. MICEX Stock Exchange:Start in Gazprom • MICEX SE trading volume is over 41% of the total market

  11. Issuers on MICEX Stock Exchange

  12. MICEX Stock Exchange:Investor Base

  13. MICEX Stock Exchange: Cash Equities • 294 securities of 185 issuers traded • 50equities of 34 issuers listed, including all blue chips • 2005 equities trading volume reached US$ 141,8 bln, 30,6% increase over 2004 • Volume of transactions with equities in Jan-Feb 2006 - US$ 49,6 bln, 4 times over Jan-Feb 2005

  14. MICEX Stock Exchange: Corporate and Regional Bonds • 375 bonds of 262 issuers traded • US$ 24,2 bln (par value) total outstanding • 114 bonds of 67 issuers listed • 2005 turnover in bonds reached US$ 83,8 bln, 2 times over 2004 • Volume of transactions with corporate and regional bonds in Jan-Feb 2006 - US$ 20 bln, 2,4 times over Jan-Feb 2005

  15. Corporate Bond Market: Proxy for IPOs • Market value of corporate bonds has grown 6,2 times during 2003-2005 • Market value of corporate bonds in Jan-Feb 2006 has increased by 28,1% to 12,3 bln USD • The biggest issuers of bonds (in terms of nominal value): • RZhD – 1.17 bln USD • Gazprom – 0.89 bln USD • Vneshtorgbank – 0.71 bln USD

  16. MICEX Stock Exchange Among Peers

  17. Russian Legislation & Regulation:Recent Developments (2005-2006) • More issuer & investor friendly • Shorter IPO cycle • 30% rule • RDR • Transparency • Corporate Governance • Investor Protection • National Infrastructure

  18. Future Prospects • Market is Ready • Infrastructure in Place • Regulation Inviting • Next Steps: • Dual Listings • Strategic Cooperation & Partnerships • Real Working Mechanisms

  19. Contacts • Address: 13, B.Kislovskiy per., Moscow, 125009, Russia • Telephone: (+7 095) 234-4811 • Fax: (+7 095)705-9622 • E-mail: info@micex.com • Web-server: www.micex.com

More Related