The Moscow benchmark index has rebounded to pre-Ukraine invasion levels, driven by an influx of Russian retail investors. This resurgence has attracted companies such as Kaluga Distillery Kristall, a vodka manufacturer, and Mosgorlombard, a pawnshop chain, to list their shares. These industries have collectively sold over 12.4 billion rubles ($130 million) in stock this year, marking a significant increase from the single successful IPO by e-scooter firm Whoosh last year.
Looking ahead, independent fuel retailer EuroTrans and UK-sanctioned gold miner Yuzhuralzoloto are scheduled to list their shares. EuroTrans plans to offer 26.5 billion rubles worth of shares on November 21, while Yuzhuralzoloto aims to sell a 5% stake later this month at a potential valuation of 120 billion rubles.
The resurgence of the IPO market follows its closure in the wake of President Putin's invasion of Ukraine in February 2022, which had peaked at over $3 billion in 2021. Maxim (NASDAQ:MXIM) Orlovsky, Co-CEO at Renaissance Capital, anticipates that without institutional investors, the IPO deals will remain small in size.
Despite ongoing sanctions and geopolitical tensions, domestic investment in Russia is thriving. Companies like Astra Group PJSC have seen their stock prices nearly double on opening trading days. The MoEx Russia stock index has surged by 50% this year, making it one of the best-performing indices globally. Retail accounts now hold 8 trillion rubles, up 48% from the previous year.
Elvira Nabiullina, Governor of the Bank of Russia, suggests that more share offers may be on the horizon as some shares must be listed one to three years after deals are closed. Retail investors like Vladimir G. are taking advantage of these opportunities to capitalize on the booming market.
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