Russian IPO wave on the way

Russian IPO wave on the way
By bne IntelliNews February 20, 2017

​A wave of Russian IPO could be gathering momentum out to sea after iconic toy store Detsky Mir placed its €333mn IPO earlier this month. Russia’s equity market has come back to life with about $1.9bn worth of securities issued in just the last three months.

Detsky Mir (Children’s World) closed the country’s second-largest IPO in three years on February 8, selling one third of its shares for RUB21.1bn on Russia’s Moscow Exchange (Moex). The IPO values the company, which specialises in toys and children’s goods, at RUB62.8bn (€991mn), also making this the biggest IPO in the Europe, Middle East and Africa (EMEA) region so far this year.

The biggest previous IPO was of Russneft, a second-tier oil company that belongs to the Gutseriev family, was half the size and also on Moscow Exchange (MOEX). The Gutserievs have built up a multi-billion business by targeting and developing oil fields that were too small to interest Russia’s oil behemoths. Russneft raised RUB32.4bn in November 2016 by selling off 20% of its shares on the exchange.

The market was booming in the noughties when the number if IPOs rose steadily to a peak of 32 in 2007 almost evenly split between the LSE and MOEX (plus a smattering of issues on NASDAQ and the Deutsche Borse), but tumbled to a mere six issuances, almost all on MOEX, in 2008 as the international crisis started. 

“There is a huge backlog of companies that want to IPO and if the market conditions change then there will be a wave of issuances,” says Chris Weafer, CEO of Macro Advisory.

Since the start of 2010, a total of 267 companies announced IPO plans, according to PBN Hill + Knowlton, of which 45 have actually happened, 12 were cancelled and another 210 are still pending.

Going forward, the volume of equity-related deals is bound to increase. Fertiliser producer Phosagro already closed an SPO to raise RUB14.9bn (€241mn) within days of the Detsky Mir IPO, and several other companies have also reiterated plans, including Oleg Deripaska’s EN+ enegy holding, online retailer Ulmart and the C1 software firm.

Indeed, the group that doesn’t seem to be in a rush to capitalise on the improving sentiment amongst portfolio investors is the government, which recently delayed pretty much all of its headline privatisations for this year other than shipping company Sovcomflot.

 












 

Company name

Date

Sector

IPO/SPO

%

Value (LC)

Value (USD)

Exchange

Mkt Cap LC

Mkt Cap

USD

Share price @ float

Detsky Mir

Feb 7 2017

retail

IPO

33

RUB21bn

$355mn

MICEX

RUB62.8

$1bn

RUB85

Rosneft

January 4, 2017

HC

PP

19.5

RUB692bn

€10.2bn

-

 

 

 

Russneft

November 25, 2016

Hydrocarbons

IPO

20

RUB32.4bn

$500mn

MOEX

RUB161.8bn

$2.5bn

RUB550

Alrosa

July 1, 2016

mining

SPO

10.9

RUB52.2bn

$813mn

MOEX

478.8990826

7458.715596

RUB65

Novorossiysk Grain Plant (NGP)

December 1, 2015

agro

IPO

30

RUB3.7bn

$55mn

MOEX

RUB34.5bn

$48mn

RUB512

Moscow Credit Bank (MCB)

July 1, 2015

finance

IPO

18.8

RUB13.2bn

$238mn

MOEX

RUB70.2bn

 

RUB3.62

United Wagon Company

April 1, 2015

transport

IPO

12.22

RUB9bn

$180mn

MOEX

RUB73.9bn

$1.5bn

RUB700

Lenta

March 1, 2015

retail

IPO

22.1

 

$952mn

LSE

 

$4.3bn

$9.85

Alrosa

October 28, 2013

mining

IPO

16

 

$1.3bn

MOEX

RUB258bn

$8.12bn

RUB35

TCS group holding pls

October 22, 2013

finance

IPO

 

$1.09bn

 

LSE

$3.2bn

 

$17.50

Luxoft

June 1, 2013

TMT

IPO

12.6

 

69.57mn

NYSE

 

$554.20

$17

Qiwi

May 1, 2013

TMT

IPO

 

 

$213mn

NASDAQ

 

$888mn

$17

MOEX

February 15, 2013

finance

IPO

 

RUB15bn

$498mn

MOEX

RUB126.9bn

$3.82bn

RUB55

Megafon

November 1, 2012

TMT

IPO

11.7

 

$1.7bn

LSE

 

$11.1bn

$19.60

EPAM

February 1, 2012

TMT

IPO

33%

 

$72mn

NASDAQ

 

$493.1mn

$12

Yandex

May 1, 2011

TMT

IPO

16.25

 

$1.3bn

NASDAQ

 

$8bn

$25

 

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