Moscow Exchange's Innovation and Investment Market announces new strategy
Moscow Exchange (MOEX) today announced a new strategy for its Innovation and Investment Market (IIM) at the St. Petersburg International Economic Forum. The strategy aims to boost the investment appeal of Russia"s most innovative companies.
As part of the strategy, a premium segment called IIM-Prime will be established that will include issuers that meet the Exchange"s Level 2 List requirements. Issuers of shares must have a market capitalisation of at least RUB 6 bln, IFRS financial statements, at least two Independent Directors and a free float of more than 10% (or free float market value of above RUB 1 bln). Issuers of bonds must have a good credit rating and total nominal value of issued bonds totalling RUB 1 bln or more.
The new strategy will also require all issuers on the IIM to comply with stricter requirements such as market capitalisation of at least RUB 150 mln (increased from the current level of RUB 50 mln), IFRS financial statements and evaluation of market capitalisation by a listing agent.
Pre-IPO and post-IPO instruments will be developed as par. The investment group Da Vinci Capital and Russian Venture Company (RVC) have established a fund to invest at the pre-IPO stage via IPOboard. The program of soft lending against shares is to be launched by the Moscow Seed Fund. The Foundation for Assistance to Small Innovative Enterprises in Science and Technology will help issuers to recover their expenses.
The strategy also supports wider analytical coverage of issuers from the IIM and innovative sectors of the economy.
Gennadiy Margolit, Managing Director of the Innovation and Investment Market said: "Our task is to provide Russia"s innovative companies with the infrastructure and all necessary facilities to access funding on the domestic capital market at all stages of the business life cycle. We work with high potential companies and give them all the assistance they need to prepare for an IPO. Additionally, we are implementing programs to boost liquidity and attract new local and international investors for securities already trading on the market."
The strategy was approved by the Coordinating Board of the IIM, which is chaired by RUSNANO Executive Board Chairman Anatoly Chubais.
Background information:
The Innovation and Investment Market (IIM) is Moscow Exchange"s market for hi-tech companies. It was created by Moscow Exchange together with RUSNANO. It works primarily to develop the innovative sectors of the Russian economy, boost liquidity and market capitalisations of innovative companies as well as provide them with fundraising opportunities. Issuers are hi-tech companies with strong growth potential. Shares and bonds of such companies as well as units of venture funds are eligible for trading. To date 39 securities have been admitted to trading on the IIM with cumulative market capitalisation of RUB 140 billion. Total trading volume was up 48% in 2014 to RUB 30 billion. All major innovative industries are present on the market such as IT, telecommunications, internet, biotechnology, aviation and space, energy efficiency, etc. IPOboard is an electronic information and trading system operating as part of the market in order to help promising non-public innovative companies to raise capital including at the pre-IPO stage. To date more than 220 companies and more than 300 investors have been registered with IPOboard.
For further information, please contact the Public Relations Department at (495) 363-3232.