Alexander E. Segal Features of Russian IPO Market in the “New Reality” (since 2022)

DOI: 10.38050/2078-3809-2025-17-1-39-59

Abstract

Since February 2022, the Russian stock market has been almost completely cut off from international investors (the so-called "new reality") amid sanctions pressure, and, accordingly, the initial public offering (IPO) process for domestic issuers has also undergone significant changes. At the same time, IPOs as a tool have become more accessible to domestic companies and have also gained more popularity among retail investors (after rising activity in 2H2020-21), who have become a new driving force in the stock market. The Russian IPO market of the "new reality" is gradually forming its own characteristics (IPO size, transaction pricing, demand structure, etc.), and its methodological study may have significant practical significance. The purpose of the study is to identify the key features of the Russian IPO market of the "new reality". As part of state initiatives to double the capitalization of the stock market, the Government has been instructed to take additional measures to support IPOs of Russian companies, which confirms the relevance of this study. The findings may be useful for new issuers planning an IPO, as well as for the scientific community studying the problems of the Russian equity capital market.

Keywords: equity capital markets, IPO, investors, retail demand, allocation.

JEL: G1, G12, G24.

For citation: Segal, A.E. (2025) Features of Russian IPO Market in the “New Reality” (since 2022). Scientific Research of Faculty of Economics. Electronic Journal, vol. 17, no. 1, pp. 39-59. DOI: 10.38050/2078-3809-2025-17-1-39-59

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