Actuality 2006-2007

As predicted by Citigroup, in 2007 the volume of IPO of the Russian companies

will make 18,096 billion dollars that is almost 2 billion dollars less than outcomes of 2006. However, the main share in

the volume of offering of 2007 will not fell to the lot of raw material sector. According to the Citigroup estimations, approximately 10 billion dollars of IPO will be got by Foreign Trade Bank, Saving Bank and ?GK-9.
The completion of several recent IPO sensified the experts

of Citigroup to feel the stability of the Russian economics. «If the volume of IPO is comparable to the results of 2006, it will carry more conviction of reliability of the Russian investments», as it is said in C

itigroup researches.

According to its data, the total volume of Russian IPO in 2006-2007 will make 37,98 billion dollars by the offering of 48 companies. That will exceed 5,5 times the total volume of Russian IPO and SPO which went through from 1996 till 2005 when public

offering was made only by 26 companies.

However, there is no speaking about high appeal of the market of the Russian companies, because as predicted by Citigroup, the next year there can be the slowdown of market growth: it will stop on the level of 10 % per annum. According to Citigroup, it is connected with high probability of check to oil prices. Besides, the forthcoming elections will complicate the process of IPO to the Russian companies that can bring to a reduction of total amount of dispositions by 4,7 billion dollars in 2008.

However, the manager of information-analysis department of the Moscow Interbank Currency Exchange (MICEx) Alexander Gerasimov considers, that reduction of IPO volume in 2007 is «in margin of error», «It can appear to be 1 billion dollars more than outcomes of 2006. Actually outcomes of 2006 and 2007 are on one level, and outcomes of 2007 will be even better structured, and more balanced».
According to the president of Deutsche UFG, the Russian companies have a great potential for offerings: the att

ainment of IPO in 2007 is supposed by 61 company if all of them manage to offer, the total volume of Russian IPO in 2007 will establish a new record – 25,7 billion dollars. And there is no limit to that.

179 Russian companies have the potential for IPO; the potential capitalization of each can make at primary public offering about 500 million dollars.

The results of the macroeconomic research conducted by NAUFOR are same.

«According to our data, the quantity and volume of IPO should only grow», as Olga Kudinova, the deputy chairman of NAUFOR, said.

However, the experts of Citigroup warn, that the appearance

of new securities in the market can reduce

the activity of the auctions at stock exchange on the certain emitters and sectors.

The owners of the companies instead of survey of home resources for intensification of company work resort to an extensive method – fund formation, as experts Citigroup complain.

Nevertheless, Alexander Gerasimov considers, that «IPO is undoubted benefit for the Russian economics. It will expand the number of instruments on the market and will considerably update the infrastructure, without which any intensification of production is impossible».