Non-governmental pension funds (NPFs) in Russia are now able to purchase shares during initial public offerings (IPOs) if the aggregate value in on-exchange trading reaches at least ₽3 billion. This marks a significant reduction from the previous threshold of ₽50 billion.
The Bank of Russia has announced that the new ordinance regulating pension reserve investments will take effect on October 13, 2024. A similar procedure for pension savings is already operational.
Under the new regulations, NPFs can increase their share purchases from 5% to 10% of the overall offering. Additionally, these funds are permitted to use pension reserves to acquire individual derivatives in the over-the-counter market with a central counterparty.
These changes aim to broaden investment opportunities for NPFs and encourage greater participation by institutional investors in IPOs, potentially boosting public offerings in the Russian market.