13 Jan 2025 12:44

Gazprombank expecting minimum of 2-3 major Russian IPOs in 2025 - first vice president

MOSCOW. Jan 13 (Interfax) - Gazprombank is expecting at least two or three major IPOs on the Russian market in 2025, Denis Shulakov, the bank's first vice president overseeing capital markets, said in an interview with Interfax.

"A large IPO for our market is, say, 15 billion rubles or more. The focus should be on significant deals. This does not mean that smaller placements are unnecessary, but the emphasis should be on major transactions, as they provide market stability," Shulakov said.

"I believe that at least two or three deals of this scale should take place. And I wouldn't just say I expect them - we are actively working in this direction," Shulakov said in response to a question about expectations for large placements in 2025.

The year 2024 saw the largest number of IPOs for the past 15 years, with 14 deals totaling 82 billion rubles. Placing shares in the current market environment, amid high yields from alternative assets such as bonds and money market instruments, as well as liquidity shortages, is a challenging task, he said. "It is possible, but it requires particularly thorough preparation and a strong investment case from issuers and organizers," he said.

"We are already seeing the prerequisites for larger deals entering the market and are confident this will become a new trend in the near future," he said.

"In the current market environment, encouraging new, large-scale placements requires a comprehensive approach from regulators. In these conditions, we believe economic incentives will be most effective for potential issuers - tax benefits and possibly lowering credit financing rates. However, it is also important to consider expanding the potential investor base by involving categories of investors who have been less active in the IPO market, primarily insurance companies and pension funds. This will be facilitated, among other things, by harmonizing regulations on asset requirements for investment purposes," Shulakov said.