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The MICEX Stock Exchange has launched trading in shares of closed-end venture fund Finam – Information Technologies. Finam – Information Technologies is the first issuer whose securities are traded in the Sector for Innovation and Growth Companies (IGC Sector), created with the support of the RF Ministry of Information Technologies and Communications.
Now the largest stock exchange in Russia, the CIS and Eastern Europe has a sector designed to promote investments and IPOs in the fast-growing innovation segment of the Russian economy. At the opening ceremony Minister for Information Technologies and Communications of the Russian Federation L. Reiman said that one of the main goals of the project was promoting the development of the innovation segment of Russia’s economy by attracting investments through the use of stock market instruments. The Ministry pays special attention to the development of the financial infrastructure for innovation companies. Considering the increasing interest of foreign investors in Russian stocks, we expect the advent of new strategic foreign investors to the Russian market, said Mr. Reiman.
According to the CEO of the MICEX SE Alexei Rybnikov, the successful first placement in the IGC Sector showed that innovation business in Russia has favorable possibilities to accelerate its development by attracting investments. This year the MICEX SE expects 10 new issuers to enter the market in the newly-opened sector. Similar to foreign exchanges, the IGC Sector of the MICEX SE has simple listing requirements. The Sector also has listing agents who organize the listing of stocks. The Sector is mainly intended for companies specializing in telecommunications, internet business, semiconductors, software, research and development, biotechnologies, knowledge-intensive machine building as well as companies involved in national projects.
Investors were offered an additional issue of shares of Finam – Information Technologies, which was fully bought by participants in trading. Finam offered investors 53 thousand shares, each costing 9467.61 rubles, and raised over 500 million rubles. The money will be used to buy assets in different segments of the IT business. In particular, Finam intends to buy shares in Begun Company, which specializes in context advertising. Main segments in which Finam – Information Technologies invests are public networks, navigation and advertising services, payment systems, games and different high-tech innovations.
Finam – Information Technologies placed its shares through an exchange-based auction. Orders to buy shares were entered through the trading system of the MICEX Stock Exchange on 14 June from 10:00 till 13:00. Preliminary results showed the success of the first placement in the IGC Sector. Detailed information on the results of the placement will be released on 15 June.
The CEO of FINAM Investment Holding Victor Remsha expects the results of the placement to confirm the predictable high demand for shares of the venture fund. Mr. Remsha explains this demand by the fact that, despite its rapid growth, the IT industry has, so far, not been present on Russian exchanges. “Our Fund is the first “ambassador” for this segment. Of course, the fact that the placement was made in the IGC Sector played an important role. Investors understand that the IGC Sector has considerable potential for further development, while the exchange itself is the most market-oriented and convenient mechanism of buying securities.”
Chairman of the Board of the MICEX SE and President of the MICEX Alexander Potemkin stressed that the creation of the IGC Sector was an important stage in the development of investment mechanisms, which have for a long time been effectively used on foreign capital markets. “We hope that this segment will be a convenient place where fast-growing high-tech Russian companies can meet with their investors.”
