Russian Companies' IPO to be Established This Year

A special depository that will render accompanying services in time of IPO of Russia?s companies could be established before the end of this year, said Oleg Viyugin, head of the Federal Financial Markets Service. The prime task of the new institution will be cutting down the dates for launching the stocks in the secondary trading after IPO, Russian daily Kommersant reported.

?Creation of such depository will materially facilitate the IPO procedure on Russia?s market and allow nonresidents to proceed to the secondary circulation of Russia?s securities in a few days after the initial offering,? Viyugin told the Russian Economic Forum Monday.

This move of the Federal Financial Markets Service proved a real surprise to the market. The dates of launching the stocks could be curtailed by using the existing infrastructure, explained Igor Moryakov, president of Depository and Clearing Company. ?A different matter is that the issue?s underwriter itself should correctly pick out the depository in view of the maximum reduction in costs.?