Managing director of the Renaissance Capital investment company Ruben Agabenyan
Photo: Valery Levitin
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Too Many Companies Coming On?
Up to $50 billion in stock is expected to be placed on the Russian market next year, according to the calculations of Russian investment banks. That is about 50 percent more than this year's $35 billion, which is twice last year's $17 billion. Specialists say that the massive influx of new companies may over-saturate the market and have a negative effect on companies that got there before them as Russia's economy grows faster than world growth rates.
The world financial crisis in August derailed plans in Russia for expansion. A large stock placement by Rusal (at least $5 billion), for example, was postponed until next year. Experts say that the market may become more volatile next year. Metals are expected to dominate, with metals companies accounting for 30-35 percent of Russian IPOs. Real estate, power and finance are also expected to be prominent. Transportation, mass media and insurance will increase their profiles.
The appearance of several new companies in one sector can have a significant affect on companies already on the market. The placement of Novorossiisk Commercial Seaport stock on the market this year had a beneficial effect on the transportation sector as a whole. Next year, six transportation companies may make their market premier. Four media companies are expected as well.
www.kommersant.com
All the Article in Russian as of Dec. 10, 2007
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