PSB discussed measures to develop IPO culture among private investors

The initial public offerings market remains an important tool for developing the economy and attracting capital to companies, but in the current conditions it needs to strengthen investor confidence. This was stated by Vera Podguzova, Senior Vice President and Director of External Relations at PSB, during the second meeting of the Committee on Financial Culture and Education of the Association of Banks of Russia, dedicated to the development of IPO culture.

"The investment market is a promising area for the development of the economy as a whole, as well as the development of medium and small companies, including high—tech ones, however, due to the current market conditions, this tool is in little demand and requires confidence-building from investors and individuals. It is necessary to raise awareness among the audience and potential investors about the benefits of IPOs, and the Prosto Kapital Financial Literacy forum, which is held annually with the support of the PSB, will be an excellent platform for discussing these issues," Podguzova said.

Alexey Zhogolev, Senior Vice President and Director of the Wealth Management Department at PSB, spoke at the meeting about the macroeconomic prerequisites for the development of the IPO market, the behavioral characteristics of investors and possible measures to reduce speculative activity.

In his opinion, an important condition for successful placements is the openness of issuers. Companies should talk in detail about their business model, competitive advantages, and development strategy. In addition, an additional factor in supporting the market may be the mandatory availability of a market maker for placements with a low proportion of shares in free circulation.

Alexey Zhogolev suggested considering the credit rating as one of the key benchmarks in assessing the quality of an issuer, and also spoke about the need for transparent allocation rules during an IPO, so that all categories of investors understood the conditions for the distribution of securities in advance and could make informed investment decisions.