The Bank of Russia has put forth a recommendation urging issuers to disclose more information during public offerings. This guidance emphasizes the need for companies to share details on the principles and approaches used in distributing securities among investors before applications are collected, as well as information about the actual receipt of assets post-sale.
Currently, only some companies provide insights into how shares will be distributed during an IPO. This lack of transparency leaves most investors unable to evaluate the potential amount of securities they might receive. Consequently, additional monetary funds are frozen when IPO applications are submitted, which also impacts liquidity in the stock market.
The regulator asserts that such disclosure will enhance IPO transparency and boost investor confidence in the Russian stock market. Additionally, brokers should inform retail clients that their orders may not be executed fully or at all.
Furthermore, issuers are encouraged to disclose details regarding shareholders who commit not to sell their shares for a specified period. The duration of this restriction and any possible exceptions should be clearly stated. This information is expected to be released through statements of material facts.