CEE Equity

Russian IPOs have long been beset by the political turmoil that surrounds their country’s relationship with the US. Many a deal has been sunk by US-Russia tension, particularly when sanctions are imposed by the former.

EMC, the Russian private healthcare company, has unveiled the price range for its IPO on the Moscow Exchange.

Equity capital markets are bracing for an influx of Russian IPOs in the autumn, following a slight easing of tensions between the US and Russia. However, not only is the threat of further sanctions still present, but Russian IPO candidates will also be heading into an increasingly crowded and difficult market, writes Aidan Gregory.

The possible flotation of a Russian hospitals group is being billed as a revival of the country’s IPO market, with more deals to follow. Bankers pointed to the recent US-Russian summit in Switzerland as cause for optimism but investors should remain as sceptical as they appear to be about the rest of the IPO market.

Bulgarian animal healthcare company Huvepharma has become the latest casualty in an IPO market oversaturated with supply.

United Medical Group, the Russian healthcare company, has launched an IPO on the Moscow Exchange, which is expected to raise more than $500m, according to a source close to the transaction.

More emerging market issuers will issue convertible bonds following landmark deals in Turkey and the United Arab Emirates in recent weeks. The asset class is seen as a way for EM companies to raise capital while avoiding rising interest rates and to showcase the increasing sophistication of their home exchanges. Aidan Gregory reports.

Polyester producer Sasa has placed the first convertible bond by a Turkish listed issuer, raising €200m, as the asset class continues to grow in popularity.

Believe, the French digital music company, completed its Paris IPO on Thursday morning but the shares bombed in their first hours of trading in another blow for European listings. However, sources close to the transaction were still pleased to get the deal across the line in what they saw as a boost for the French IPO market after another sizeable listing was pulled last week.

Russian gold miner Nord Gold said on Thursday that it wants to launch an IPO on the London Stock Exchange, following a rally in the price of gold since March.

National Bank Trust, the bad bank set up by the Russian government after the financial crisis, has raised Rb50.2bn ($681m) by selling shares in VTB Bank, one of Russia’s largest banking groups.

A deal-hungry retail investor base provided crucial support for a strong first few months of the year in Russian equity capital markets, and sources in Moscow are hopeful that the momentum will carry on through 2021 as the political noise that threatened to derail the market subsides.