Russian state-backed mortgage and housing agency DOM.RF has confirmed plans to hold an initial public offering (IPO) on the Moscow Exchange (MOEX), with bookbuilding set to begin on November 14, according to Kommersant citing unnamed market participants. 

bne IntelliNews already reported that the state could sell up to 5% in DOM.RF through an IPO. This would make the first public listing of a state Russian company in 18 years. 

Reportedly, DOM.RF aims to price the offering between November 17 and 18, with shares expected to start trading later this month. The placement is anticipated to include first-tier listing status, while the state will retain a controlling stake. 

CEO Vitaly Mutko confirmed to Kommersant that the final offer price will depend on investor interest. According to analysts surveyed by the daily, DOM.RF’s pre-capitalisation equity valuation ranges from RUB356bn to RUB390bn ($5bn-$5.5bn) and fair pricing per share is seen in the RUB2,100-RUB2,600 range.

State-controlled Sberbank and VTB Bank, as well as private T-Bank and Alfa-Bank are acting as joint bookrunners. Market participants told Kommersant that interest is robust across investor categories, with more than 20 institutional investors reportedly engaged, including all major market players. Demand prior to bookbuilding reportedly reached RUB30bn ($422mn).

Analysts warn that DOM.RF’s close ties to the state may expose it to geopolitical risk, including future sanctions. Still, the IPO could pave the way for more state-controlled issuers, perhaps also the assets that came to the state as part of the large-scale nationalisation campaign of the past two years.

DOM.RF was part of the large-scale US sanctions against the Russian financial sector, designating more than 50 banks.

DOM.RF is a financial institution for development in the housing sector, which includes the bank of the same name, which at the end of 3Q24 ranks 9th in terms of assets in the Russian banking system. In 9M24 it earned RUB58bn in net profit under IFRS, showing a 58.1% y/y growth.

In September, MOEX expected five IPOs to take place on the platform before the end of 2025. Besides DOM.RF, another major long-awaited offering is that of the petrochemical major Sibur.