In 2024, the number of public share offerings rose to a decade high, according to a report from the Bank of Russia. Nineteen issuers had shares offered on the stock market, with 15 of them conducting an initial public offering (IPO). These offerings raised more than ₽102 billion, a figure that did not surpass that of 2023.
The Bank of Russia has released its first report focusing on the IPO market and aims to continue this review annually.
Public offerings primarily occurred in the first half of 2024, coinciding with stock market growth and increased demand for shares among retail investors. The market was predominantly made up of small and medium capitalisation companies operating in sectors such as IT, digital technologies, the sharing economy, and pharmaceuticals.
Both retail and institutional investors participated in the purchases, with their investments nearly balancing out at 40% and 48% of the total funds raised, respectively. Notably, retail investors played a crucial role in shaping the dynamics and outcomes of these public offerings.
The review indicates that demand for shares among a significant number of IPO participants decreased within the first 30 days post-offering. This suggests a trend of short-term investment strategies, possibly influenced by an uncertain external environment affecting the capital market.
