Russian companies’ scaled-down IPOs in 2023

Nov 13 (Reuters) – Gold miner Uzhuralzoloto (UGC) set the price range on Monday for its initial public offering (IPO) on the Moscow Exchange, the latest in a series of small capital raises by Russian companies as they adjust to life without Western capital.

Russian share listings have been few and far between since Russia sent armed forces into Ukraine in February 2022, and are generally characterised by small volumes and dependent on retail investors.

In 2023, firms have raised a total of around 8.5 billion roubles ($92 million) in IPOs and direct listings, according to Reuters calculations, a far cry from the billion-dollar capital raises achieved by Russian companies in the earlier years of President Vladimir Putin’s time in office.

The Western banks that formerly acted as underwriters and bookbuilders are now absent, with Russia’s largest lenders picking up the slack.

Electric scooter company Whoosh (WUSH.MM) staged Russia’s only IPO in 2022, raising 2.1 billion roubles ($33 million at the December 2022 exchange rate), less than originally hoped. Here are the companies that have followed in 2023.

IPO/DPO

– Biotech startup Genetico (GECO.MM) raised 179 million roubles in an IPO in April.

– CarMoney, a fintech service owned by SmartTechGroup (STG) raised 978 million roubles in a direct public offering (DPO) in July.

– Technology company Astra (ASTR.MM) raised 3.5 billion roubles in an October IPO.

– Men’s clothing chain Henderson (HNFG.MM) attracted 3.8 billion roubles through its IPO in early November.

– IT company Softline’s (SOFL.MM) shares have begun trading in Moscow after a direct listing in September. That came after Softline separated from its global partner, now called NOVENTIQ.

SPO

– State-owned lender VTB Bank (VTBR.MM) raised 94 billion roubles in a secondary public offering (SPO) in June, in a capital top-up that saw an undisclosed investor acquire a chunk of the state’s share in the bank

– Steel pipe maker TMK (TRMK.MM) raised 4 billion roubles in a September SPO.

($1 = 92.0600 roubles)

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