Establishment and structural organization of Volga-Dnepr Group of Companies dates back to 2001. Strategic development plan implemented by the Company management resulted in Volga-Dnepr presentation of the new product on the world market – service of global cargo transportations using unique An-124-100 Ruslan aircraft. Today Volga-Dnepr Group of Companies is a customer-oriented, dynamically developing and high-level professional company that possesses the ramified network of offices and subsidiaries all over the world.

Russian power company – Volga Territorial Generation Company (TGC-7) OJSC – was set up on August, 1, 2005 within the frame of project realization of Samara, Saratov, Ulyanovsk and Orenburg power systems restructuring. Main activity of the company is thermal and electric energy is production, electric power sale at the wholesale market, heat supply to domestic and industrial consumers.

KAMAZ OJSC
Date of offering beginning: 4Q of 2008
Date of offering end: 2008 year
Stock exchange: Russian, abroad (most probably LSE)

Igor Zavyalov, former deputy chairman of VTB board, will supervise the financial activity of the currently formed Rostecnology public corporation which assets are estimated at $25 bln. As it became known, Sergey Chemezov, public corporation head, offered Rostecnology supervisory board to approve the candidacy of his personal friend for the post of Deputy General Director of the corporation.

Russian VTB bank that received $8 bln during the initial offering entered the list of the largest world IPO in 2007. The list also includes Chinese CITIC Bank Corporation and Dubai Ports World from UAE. In the analysts’ opinion of Ernst & Young consulting company, “developing markets” will exactly provide the stable inflow of companies that want to hold initial public offering (IPO) in 2008.

In 2008-2010 IPO of the following companies in the metallurgy sphere and mining sector is expected: MBC Resources, OJSC Inprom, Metalloinvest Holding, Mechel (coal segment), Russian Copper Company, VSMPO-AVISMA Corporation.

In the opinion of the leading Russian investment banks’ representatives, activity of domestic companies in terms of stocks offering was stimulated by the growth of borrowings’ cost in the last months. Evgeny Dorofeev, chief of corporate analysis department of Bank Petrocommerce, declared that interest growth to IPO during the liquidity crisis of the Russian companies is determined by the attraction increase of this method of financing. “The main here is not a profit matter, but, on the one hand, high price of borrowings, especially from the market (without secutiry), but not bank one, and on the other hand, overvalue of risks by investors, when yields are required from the fixed income instruments, which they can’t provide. As the result money swaps into the equity securities. It turns out that IPO is now; it is simply the more advantageous method of financing”.

According to the results of 2006 Russia occupied the fourth place on IPO (initial public offering of companies’ stocks on the stock exchange) and left behind Japan, but passed forward China, the USA and Great Britain. Foreign investors buy up Russian enterprises’ and corporations’ securities. The Russian companies have started allocating stocks on the stock market one by one. According to the experts, 20 Russian companies sold stocks on $17,5 – 21 bln in the previous 2006. This figure equals the Russian debt to the Paris Club, that is $25 bln and it has been the government debt till recently. Moreover, Rosneft has recently hold the “public IPO” for $4,5 bln. Its stocks have been sold not only on a stock exchange, but also in the Sberbank branches. New Russian companies’ IPO are waited on the London Stock Exchange (LSE). According to Chris Gibson-Smith, the LSE chairman, in 2007 the amount of the Russian companies’ IPO on LSE will be the same as in 2006. He adds also that eight Russian companies hold IPO on LSE and attracted about $13 bln in 2006.

The Russian companies continue to increase the initial offerings. For the 3Q2007 there were 16 IPO (including the largest Sberbank and VТB offerings) as compared to 12 in January-September, 2006. The experts consider that by the end of 2007 there will be approximately 30 companies on the market that will attract about $26 bln.

“Russian IT market grows quicker, than telecommunication service, and should interest investors”, declared Andrey Sharonov, Troika Dialog managing director. In 2002-2006 the market grew on the average by 22% annually, and in the nearest years, expects Sharonov, it will continue to grow by 20-25% per year.