At the annual Baltic PR Weekend forum an extended session of the Committee on Financial Communications and Investor Relations of the Russian Association of Public Relations (RASO) took place. The session of IR Committee of RASO was conducted as a closed round table entitled «IPO’s in Russia: rarities or a trend?”. The General Director of Fleishman-Hillard Vanguard Elena Fadeeva and the Account Director of the Corporate Communications and External Affairs Practice Alena Georgobiani took part in the event.
During the meeting, experts analyzed the possible growth of IPOs on the Moscow Stock Exchange, the necessary conditions for themand the cooperation of financial institutions, state development institutions, and public companies within the IR-and PR-community.
According to participants of the round table, in the right market conditions about 30 IPOs will be conducted on the Russian stock exchange in the next 3 years, and they expect a wave of deals related to the privatization of state-controlled companies.
The market of IR support services for new listings on the Russian exchange in 2012-2015, was estimated by the participants to be worth $10-25 million. It was noted that, during the preparation of each IPO, services can be divided into three phases: Preparatory communication support, including work with foreign target audiences ($ 100-500 thousand per year), the placement itself ($ 50-300 thousand), support after the IPO including the preparation and publication of annual reports ($ 50-200 thousand). Thus each placement on the Russian stock exchange can bring the communications industry between $ 0.2 to $ 1 million.
During the discussion, several recommendations to increase the number of placements of Russian companies were created, such as:
- To actively promote to the IR-community through public organizations’ channels the opportunities that are provided to issuers by cooperating with Russian exchanges
- To develop and implement standards for IPO preparations. To prepare and initiate IR-communication platforms at least a year before the expected placement
- To develop approaches to potentially capitalise on the reputation of Russian companies
- To develop high standards of corporate management and disclosure and invest in corporate culture
“Activation of the IPO process on the Russian stock markets can significantly stimulate the Russian economy and the communication industry in particular- said the chairman of the Committee on Financial Communications of RASO, a member of the Board of Russian Private Equity Funds, Alexei Germanovich. – , If the Russian stock exchange manages to attract and provide high quality services to new issuers in the conditions of a financial crisis, the IR-industry will have a new market with a capacity of tens of millions of dollars. In order to achieve this goal we need state institutions, exchanges, issuers and the professional community to work together. ”
The round table was attended by representatives of the Moscow Stock Exchange, Russian issuers (Sberbank, MTS), the largest PR and IR agencies (SPN Ogilvy, Citigate Dewe Rogerson, Fleishman-Hillard Vanguard, AGT), as well as the civil society organizations (RASO, ICCO). The Committee on Financial Communications and Investor Relations of RASO was formed in December 2011. This was the second meeting of the committee.
Secretary of Financial Communications Committee of RASO, Alexander Uvarov mobile phone +7 (926) 9059876, firstname.lastname@example.org
Baltic PR Weekend, Fedor Mozhaev mobile phone +7 (916) 1047576, f.mozhaev @ spnogilvy.ru
Original materials can be viewed at: http://www.interfax.ru/pressreleases/txt.asp?id=265969