Future IPO market rules: outcomes of Bank of Russia report discussion

The first part of the changes is aimed at adapting the information disclosed by issuers to the needs of investors. The summary of a securities prospectus will be transformed into a short and clear document comprising financial indicators compared with those of the previous periods, a description of the company’s development strategy, details of its dividend policy, and other key information. As for the securities prospectus, it will include forecast indicators for the coming year.

Companies are also required to disclose information on the planned and actual allocation of shares among buyers, existing restrictions on the sale of securities by the issuer and current shareholders, as well as on the mechanisms used to stabilise share prices in order to decrease their volatility after the IPO.

The regulator plans to set a new listing condition. When going public, an issuer should submit at least two independent analytical reports with an assessment of the company’s fair value. Such reports can be prepared by professional participants or audit firms operating in the financial market. These reports should contain all essential information about the company: its current market position, performance indicators, development prospects and forecasts, and potential risks. The authors of reports shall also substantiate their assessment methodology. As a result, retail investors will obtain access to high-quality analytics for making well-informed decisions.

To provide an additional assurance of the information accuracy and the quality of offering documents, issuers of microcap stocks can engage service providers specialising in prospectus preparation and/or arranging securities offerings. All changes are to be prepared by the end of 2025.