Moscow Exchange shares risk concerns with investors
On Monday 4 February, the Moscow Stock Exchange officially announced its IPO for 15 February. In its IPO prospectus, the exchange warns potential investors about the risks that can affect its financial results.
The exchange is concerned over the possible delisting of the most liquid issuers listed in the IPO materials. As of late September 2012, the five most traded stocks accounted for 70% of the exchange’s total trading volume. If these securities should be delisted or become unattractive to investors for other reasons, the exchange will suffer.
The organising banks project that the exchange will turn in a profit of $341 million in 2014, an increase of $72 million from 2012 (the rate forecast by Renaissance Capital). The Moscow Stock Exchange has pledged to pay up to 50% of its net IFRS profits in dividends in 2014. Current shareholders will be paid 30% of net profits in dividends in 2012.
First published in Russian in RBC Daily.