Moscow Exchange standards will ensure transparency and confidence in the IPO market
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published
The Moscow Exchange has prepared new standards for initial public offerings (IPOs). The document aims to provide future issuers with clear and understandable practices for successful IPOs, strengthen investor confidence in the stock market and stimulate the emergence of quality issuers.
Earlier it was also reported* that the Central Bank plans to reform the IPO market.
KAMA FLOW partner Pavel Okhonin commented:
"We can only welcome the Central Bank's initiatives to reform the IPO market. In 2023-2024 we saw a number of offerings, not all of which were transparent to the market in terms of valuation and allocation principles, which had a negative impact on the perception of the IPO instrument itself by investors, especially retail investors. Together with the IPO transaction standards recently published by the Moscow Exchange, the Central Bank's initiatives should make the requirements for initial public offerings more understandable to the market, which will obviously contribute to the emergence of higher quality issuers. We would like to note separately that a number of similar rules in terms of reporting, due diligence and corporate governance could be applied to the so-called pre-IPO transactions, which often attract a significant amount of funds from investors - individuals, including non-qualified investors".