Russian IPOs: what works, what doesn’t | beyondbrics

Russian IPOs: what works, what doesn’t | beyondbrics:

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The Russians are coming: Alrosa, the state diamond miner, and Tinkoff Credit Systems both announced plans to go public this week and there is a long line of other Russian companies waiting to list. So as investors weigh up the all too familiar Russian risks, it’s worth tallying up how recent Russian IPOs have panned out.

Alrosa plans to sell a 16 per cent stake as part of the Russian government’s $15bn privatisation programme. The world’s biggest diamond producer by volume expects to raise up to $1.5bn in a listing on the Moscow stock exchange.

Tinkoff, one of Russia’s largest credit providers, has chosen London as the venue for its IPO, which it hopes will raise up to $750m.

Demand for the issues will depend on Alrosa and Tinkoff avoiding the trap that some other Russian IPO hopefuls have fallen into by overvaluing their stock at closing. That said, investors’ appetite for Russia risk is definitely returning, says Chris Weafer, senior partner at Macro-Advisory, a Moscow-based research consultancy."

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