Moscow Exchange and Russian Private Equity Council sign cooperation agreement
Moscow Exchange has signed a cooperation agreement with the Russian Private Equity Council at the St. Petersburg International Economic Forum. The agreement was signed by Anatoly Chubais, Chairman of the Executive Board of RUSNANO, and Alexander Afanasiev, CEO of Moscow Exchange.
The agreement aims to implement a new development strategy on Moscow Exchange"s Innovation and Investment Market (IIM). In particular, training and marketing campaigns will be launched targeting Russia"s innovative companies and prospective investors and new government incentives are to be developed to stimulate investments in innovative companies.
Commenting on the agreement, Mr. Chubais said: "The collaboration between the Russian Private Equity Council and Moscow Exchange serves to establish fundraising mechanisms for innovative companies throughout the business life cycle. The involvement of funds that possess a track record of driving innovation will allow for improvements in corporate governance and reduce risks associated with building their strategies. Bringing innovative companies to the public market allows funds access to liquidity and maximizes the value of investments".
Mr. Afanasiev said: "The public equity market plays an essential role in the redistribution of capital. Going public for high tech companies which often experience a lack of borrowing opportunities due to a shortage of collateral funds or an absence of credit history, represents the most effective way for financing. Private equity funds help innovative companies prepare for an IPO and establish good corporate governance practices. At the same time, at IPOs such funds get a market value and liquidity for their investments. The Russian equity market infrastructure is fully ready to host IPOs and attract Russian and international investors".
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.
Russian Private Equity Council
On 17 September 2014, a memorandum was signed to establish and develop the Russian Private Equity Council. The Council members are investments units of state banks and development institutes, as well as the largest Russian private investment companies and investment advisors. The Council works to create a favorable environment for equity funds in Russia. It operates as a subcommission of Committee on Innovation Policies and Innovative Entrepreneurship at the Russian Union of Industrialists and Entrepreneurs.
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