Experts at IC Premium Capital forecast increased interest towards the capabilities of the Russian stock market on the part of investors and securities issuers.

At a workshop on January 29, President Vladimir Putin said that it was a priority to improve the competitiveness of the Russian stock market, noting that domestic companies desiring a public listing should first place their shares in that domestic forum. Prime Minister Dmitry Medvedev and other Russian participants spoke on the privatization of state enterprises and the availability of the stock market as a tool for that task at the World Economic Forum in Davos.

According to experts of IC Premium Capital, a listing agent in the sector of market innovation and investment on the MICEX exchange, the statements made by the Russian leaders have lead many investors and potential issuers to analyze more carefully the possibilities of the Russian stock exchange. It is true that the shortcomings of the Russian stock exchange are known among professionals on the market. The difficulties complained of include, above all, the legal restrictions on securities transactions and a serious lack of the so-called long-term money.

If the state solves these problems, at least partially, the entry of investors onto the Russian stock market will become more confident. However, even now, experts say, that the yield on the domestic stock market for Russian companies is justified, as the stock market offers more favorable terms than what is provided by the majority of domestic financial institutions.

“Currently, many business owners are making decisions to do IPOs. The entry onto the stock market increases investment attractiveness of the company, making the business more transparent to investors. It also creates an additional motivation for the search for an effective governance model,” said Kirill Lapin, the CEO of investment company Premium Capital. “Information transparency and publicity for Russian companies that would be occasioned by a stock market listing increases their attractiveness to long-term capital. The entry of multiple new companies onto the stock market will improve the dynamics of the exchanges in Russia as a whole.