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MICEX-RTS Possible USD1bn IPO

23.03.2012 20:11 / Interfax

Integrated MICEX-RTS stock exchange can float $1bn, according to a source close to the Board of Directors.

“The IPO estimated worth is no less than $1bn. Possibly, $1,1bn. We plan the exchange to be valued at $6bn by the time of placement. We will place existing shares, including those owned by former RTS shareholders and the new issue”, said the source.

According to him the MICEX-RTS development strategy 2012-2015, passed by the Board of Directors in February, the exchange plans an increase of earnings per share from 4,5 roubles in 2011 to 7,5 roubles in 2015, yield up from RUB18bn to RUB 33bn, profit – up from RUB 7bn to RUB 17,5bn. “These results will be reached by the exchange’s development, including the return of primary and secondary placements from London to Russia”, he said.

According to the strategy, presented at the stock exchange clients committees on Thursday, by 2015 MICEX-RTS plans to boost its share in primary and secondary placements of Russian companies to 65% (12% in 2011). The exchange also plans to increase its share in the secondary exchange traded Russian share market from 58% in 2011 to 64% in 2015. “By 2015 we see ourselves as absolute leaders in Russia/CIS IPOs”, said MICEX-RTS President Ruben Aganbegyan.

The source did not rule out only former RTS shareholders remaining IPO participants in the event of poor stock market conditions. “It is cheaper for state banks - exchange shareholders to purchase the $300mn, rather than pay the cancellation fee. But that is the worst case scenario, I think there will be demand for the exchange stock, there are enough bookrunners”, he said.

In accordance with the MICEX-RTS integration agreement, the new exchange is under obligation to float by the end of 1H 2013. Priority placement rights are with former RTS shareholders, who will account for the first RUB 9bn of the IPO.

It was reported earlier that the MICEX-RTS Board of Directors had approved the list of global coordinators of the IPO: JP Morgan, Credit Suisse, Sberbank and VTB.

Apart from the four global coordinators, the Board of Directors selected five bookrunners. Two sources familiar with the Board of Directors decision named these as Renaissance Capital, Deutsche Bank, UBS, Goldman Sachs and Morgan Stanley.

Trading infrastructureProject Group №1Ruben Aganbegyan