Number of IPOs and SPOs of Russian companies next year may top 2021 results

The number of Russian companies planning on executing IPO and SPO in 2022 is larger than the number of emitents already listed in 2021, as reported by Alexander Pukhaev, Head of Global Markets Investment Banking at VTB Capital's investment forum “RUSSIA CALLING!”.

«During 2021 we are witnessing the increase of activity and interest of our clients in stock market. As you know, IPOs and SPOs occurred during the entire year. Only few of them were postponed. As of today, the number of companies that are planning to be listed next year is even larger than the number of emitents already listed this year. We are not seeing any drops in activity. Of course, the market environment can have its effect on that”, said Pukhaev.

He noted that companies from virtually all sectors, both traditional (metal industry, ore mining) and new (IT, retail, consumer sector) express their interest in listing.

He said that 2021 was rich in emitent activity on capital markets, which was boosted by the high growth on worldwide markets and company assessment growth. “A lot of them decided to use this to get on the market. Because of that we saw the emitent activity grow already in late 2020. This wave continued into 2021, and it began with a very successful listing of Fix Price. In its turn, it made many people realize that such successful IPOs are possible”, added the head of department.

Pukhaev highlighted that the rise of activity on equity capital markets is often followed by a burst of activity in the M&A sphere. “When companies successfully place shares, many of their competitors and partners also start considering such an option. Some of them conclude that for some reasons they are not ready for entry or start reviewing their strategy as a whole. They then realize that they, for example, need to expand or grow faster or revise their ESG-strategy. This leads to a multitude of M&A deals because companies are either trying to purchase other companies to expand or spin-off the assets that might be an obstacle for a higher assessment”, said the head of department.