DOM.RF plans to raise 15-30 bln rubles by placing 10% of shares via IPO
MOSCOW. Oct 20 (Interfax) - DOM.RF, the Russian government housing and urban development corporation, plans to raise 15-30 billion rubles by placing 10% of its shares in an IPO, CEO Vitaly Mutko said at a meeting with President Vladimir Putin.
"This is the first financial market company after Sberbank to go public in the last 18 years. We are now among the top ten largest companies. We are planning, Vladimir Vladimirovich [Putin], to raise between 15 and 30 billion rubles from the market, and to place around 10% of the shares on the market," Mutko said.
DOM.RF plans to use the funds raised for project financing.
"We will finance around a million square meters of housing, and around 15,000 families will be able to improve their living conditions. We are investing in infrastructure development in the constituent entities of the Russian Federation. This is also around 50 billion rubles, and we believe that we will finance it. We will of course continue to develop socially responsible businesses," Mutko said.
Mutko said preparations for the deal are in the final stages.
"We have resolved all organizational issues together with the Central Bank, the Moscow Exchange, and the government. We have prepared, amended the charter, and registered the share prospectus with the Central Bank," he said.
The state corporation expects that its shareholders will be large investment funds, pension funds and retail investors.
"The market is opening up today, and we expect that with our dividend yield per share of 11%-12%, the interest in us will be very high, Vladimir Vladimirovich," Mutko said.
"I think so. If you maintain a responsible dividend policy, then of course, these will be attractive investments," Putin said in response.
The new development strategy of DOM.RF until 2030 assumes that the company will pay dividends of no less than 50% of net profit and will double its assets.
"We must become a company with 11 trillion in assets by 2030, growing another two times. And all these investments will go into the housing sector," Mutko said.
The net profit of DOM.RF to International Financial Reporting Standards (IFRS) in H1 2025 amounted to 39.1 billion rubles, up 15% year-on-year. The state corporation plans to earn around 90 billion rubles in net profit this year, and to reach a "plateau of 100 billion" next year, Mutko said.
DOM.RF is a financial development institution in the housing sector; it was created in 1997 under the name Agency for Housing Mortgage Lending by a government decree to facilitate the implementation of state housing policy. The state corporation paid 24 billion rubles in dividends in 2024 (around 31% of adjusted net profit).
DOM.RF on Monday said that a decision was reached during a supervisory board meeting on October 14 to apply to the Moscow Exchange for a listing of its ordinary shares.
