Russian IPOs to go up

The Russian Federal Securities Market Commission expects an intensive growth of initial public offerings (IPO) on the Russian stock market in mid-2004, Chairman of the Commission Igor Kostikov told journalists in St. Petersburg today. According to him, the current stock trade volume is now high enough. "Russian securities trade mostly takes place within the country; correspondingly, they are withdrawn from foreign markets," he said.

To date, only two IPOs were conducted on the Russian stock market. It is the floating of shares of RBC Information Systems, which took place on April 18, 2002, and of the 36.6 Drugstore Chain on January 30, 2003. Both IPOs were held on MICEX.

Kostikov also pointed out that measures for regulating the market and controlling professional market participants will be stricter for the benefit of investors. He stressed that the stricter market discipline was, the stronger would be the incentive for investors to invest in Russian securities.