The results of selection of legal entities for PRE-IPO financing companies to go public at the Moscow Exchange within IIM
On October 15, 2012 the results of the selection of legal entities for the purpose of a joint PRE-IPO financing of companies which intend to go public at the Moscow Exchange within the Innovation and Investment Market (IIM) were announced. The competition was held by Moscow Foundation for Venture Capital Investment Promotion (Moscow Seed Fund), a fund set up to promote venture investment in local startups in scientific-technical sphere, with the assistance of RVC and Moscow Stock Exchange and at the initiative of Department of Science, Industrial Policy and Entrepreneurship of Moscow.
Two companies, FINAM CJSC and ALOR INVEST CJSC namely, went through the selection process to join the Foundation in co-financing the enterprises that prepare for IPO within IIM.
The maximum investment loan per applicant enterprise shall be RUB10 million. The minimum investment loan amounts to RUB1 million. The interest rate of the investment loan shall equal the refinancing rate of Bank of Russia.
Both FINAM CJSC and ALOR INVEST CJSC shall take a decision on supporting a certain applicant enterprise at their own discretion with regard to the fact that in case of financing, the enterprise gets the Foundation investment loan with deferred payment till IPO.
"PRE-IPO support projects will undoubtedly influence IIM development most positively. They will allow young innovation companies raise the quality of their preparation for IPO. It is important that by results of the competition the legal entities were selected among the Exchange"s most active partners, which are the IIM listing agents”, says Gennady Margolit, Executive Director of Innovation and Investment Market.
"This support instrument, as well as the other instruments introduced by the Foundation, is based on the principles of Public-Private Partnership (PPP). A private investor takes the decision which of applicant enterprises will be given the loan and the Foundation approves it. I would like to stress the importance of the fact that the Moscow Government and RVC back up the Foundation initiative to offer investment loans with a record low interest rate (a bit higher than 8%), which should only strengthen the PRE-IPO companies" motivation. I hope this step will lead to an increase in the number of companies going public at the Moscow exchange within the Innovation and Investment Market”, comments Aleksey Kostrov, Executive Director of Moscow Foundation for Venture Capital Investment Promotion.
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