IPO market performance and trends in 2024: first review by Bank of Russia
In 2024, the number of public offerings reached a
The Bank of Russia has prepared its first information and analytical material dedicated to the IPO market. The regulator plans to issue this review annually.
Most public offerings were conducted in 2024 H1 amid growth in the stock market and elevated demand for shares from retail investors. Small capitalisation (less than ₽30 billion) and medium capitalisation (₽30 billion – ₽100 billion) companies engaged in IT, digital technologies, sharing economy, and pharmaceuticals dominated the market.
Shares were purchased by both retail and institutional investors, whose portions were almost equal, i.e. 40% and 48% of the total funds raised (respectively). However, specifically retail investors shaped the dynamics and results of the public offerings.
According to the review, demand for shares among a substantial portion of IPO participants tended to go down during the first 30 days after the public offering, which was evidence of a short-term investment strategy. This was partially related to the uncertain external environment affecting the capital market.