Russian govt proposes selling between 1% and 5% of shares in DOM.RF during IPO - deputy finance minister
MOSCOW. Nov 26. (Interfax) - The Russian government initially proposes privatizing 1%-5% of shares in the state corporation DOM.RF, Deputy Finance Minister Alexei Moiseyev said.
On Tuesday, the State Duma passed a bill at its first reading allowing for the privatization of DOM.RF while maintaining the state's controlling stake (50% plus 1 share).
"The sale of the controlling stake is prohibited by this bill. As for a blocking stake, it is possible, but the government currently has no such plans. The proposal involves selling between 1% and 5% of the company's capital, depending on market demand," Moiseyev said during a State Duma session.
Vitaly Mutko, the head of DOM.RF, previously suggested that the share offering could take place in H2 2025.
"We expect that most of the interest in these shares will be from investors - individuals; a sale to a strategic investor is not anticipated. It is anticipated that shares will be sold to the broadest possible range of individuals, as per the president's instruction, to create the broadest possible basis for the stock market to develop in Russia. We will sell to investors who are currently working via such institutions as individual investment accounts, the long-term savings program, and so on," Moiseyev said.
He said that initially up to 15 billion rubles might be raised, given the capacity of the Russian stock market. "Clearly this is not the limit; if the first tranche is successful, then public offerings will be extended further. We hope that the company's capitalization will grow, so during further fundraising we'll sell shares at a higher price," Moiseyev said.
He also talked about what the state corporation planned to use the proceeds for. "We still need to return investments to the National Wealth Fund, which are currently invested in this company. And secondly, to direct the money for the development of the company, to finance priority areas, such as project financing for housing construction," Moiseyev said.
JSC DOM.RF is a financial institution for housing sector development, established by the government in 1997 as Agency for Home Mortgage Lending to facilitate the implementation of state housing policy. The state corporation includes a bank of the same name, which was the ninth biggest by assets in the Interfax-100 ranking of Russia's biggest banks in Q3 2024.
Net profit to International Financial Reporting Standards rose 58.1% year-on-year in 9M 2024 to 58.1 billion rubles.