Actuality October, 19, 2007

Deutsche Bank forecasts IPO entry of 30 Russian companies in 2008 with a total volume of $36 bln against 23—24 offerings with the volume of $24,5 bln th is

2007 year. Such opinion expressed Dmitriy Snesar, co-director of Deutsche Bank investment banking direction in Russia, at the capital market conference.

According to him, an IPO entry of infrastructural sector companies (banks, metallurgical companies, extractive industries and companies producing consumer goods.) will be very popular next year.

“We see no transactions which can take place in the 1Q 2008.

The basic volume falls at the 2Q and 4Q”, he said, adding that IPO crisis is not expected in Russia.

Moreover, in the opinion of Deutsche Bank analysts, new companies that will enter IPO can be logistic companies and financial structures, including insurance companies.

Speaking about the investors’ behaviour, Dmitriy Snesar said that investors prefer GDR.

“Nobody wants to deal with Russian realities, and the intention to compel investors to hold the Russian securities will result in sales conduction with a major discount”, he said.

On the whole 76 companies entered IPO in Russia, 220 companies more have capitalization over $500 mln, “but it’s not the fact, that all of them will become public”. The banking sector can become one of the leaders that enters IPO not to keep

the growth down or it looks for strategic investors.