14 companies will go public in Russia in 2024

In Russia in 2024, 14 companies held initial public offerings (IPOs) - 13 of them on the Moscow Exchange and one firm on the St. Petersburg Stock Exchange, Izvestia found out. This is a record for 17 years, since the beginning of the global financial crisis.

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However, the majority of IPOs in 2024 turned out to be unprofitable for investors. For example, the securities of software developer "Diasoft" first showed great growth, but by the end of the year collapsed by 35%, explained leading analyst of Freedom Finance Global Natalia Milchakova. The expert specified: shares of the microfinance organization "Zaimer" lost the most - they fell in price by 43%.

Companies have become more frequent IPO to reduce the cost of financing, said the analyst of financial markets service "Gazprombank Investments" Andrei Stratichuk. In a high key environment, firms are slowing corporate lending because of their inability to pay for expensive loans.

"Also, firms go to the stock exchange because of closed foreign capital markets - they have the opportunity to raise money for development only within the country," says Andrey Petrov, director of client relations at BKS World of Investments.

The interest of IT-sector companies in IPO is due to the fact that the Russian IT-industry now has an opportunity to import substitution of foreign products, believes Natalia Milchakova.

Also, bureaucratic barriers are decreasing - it is easier for firms to enter the stock exchange. Very small companies are taking this step: the developer APRI or the dairy packaging manufacturer Lambumiz, Andrei Petrov gave an example.

Read more in the exclusive material of Izvestia:

Stock exchange breakthrough: the record number of companies in 17 years went IPO