2011 Russia Day at NYSE

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NYSE Euronext is hosting The NYSE Russia Business and Investment Summit aimed at increasing awareness of U.S. investors in the potential of Russian equities, attracting foreign investments into the Russian economy, promoting public offerings of Russian companies and boosting cross-border transaction activity.

This event offers the chance to meet the major players in the Russian business arena as well as key fund managers interested in Russian investment. The Summit will provide in-depth perspectives on the current state of the Russian economy while allowing its participants to discuss strategic opportunities with market leaders as well as U.S. and Russian government officials.

NYSE Euronext currently has 4 companies listed from Russia:

  • Mobile TeleSystems OJSC (NYSE: MBT), owned in part by AKF Sistema, Russian billionaire Vladimir Yevtushenkov's holding company
  • Vimpel-Communications (NYSE: VIP), part of the Alfa Group owned by Russian billionaires Mikhail Fridman, German Khan,  and Alexei Kuzmichev
  • UC RUSAL (Euronext: RUSAL), owned by Russian billionaire Oleg Deripaska
  • Mechel OAO (NYSE: MTL) including Mechel Preferred Shares (NYSE: MTLPR) owned by Russian billionaire Igor Zyuzin.

These 4 players have a total market capitalization of about $55 billion. The NYSE/Russia relationship dates back to the Vimpel-Communications IPO on November 15, 1996. The most recent Russian company to list on the NYSE Euronext was UC Rusal which raised $2.2 billion in its IPO on the NYSE Euronext Paris market in June 2010.

With President Dmitry Medvedev’s initiative to launch Moscow as an International Financial Center (MIFC) underway, Russia recognizes the importance of advancing domestic capital markets to ensure transparency, technological capacity and credibility underpinned by a robust regulatory framework. Duncan Niederauer will be attending President Medvedev’s Advisory Board on MFIC on 28 October.

Russia has an aggressive $50 billion privatization program of key state assets and a crowded pipeline of IPOs originating from within Russian borders, the international capital markets will continue to play a pivotal role for private issuers and government. This should come as no surprise given Russian issuers have raised $58 billion on international markets since 2006 in IPOs and follow-ons.

In these volatile times of 2011 seven attempted Russian GDR offerings have been canceled in Europe and of the six deals that have closed, most priced at the lower end of the initial pricing range. With increased regulatory burdens and scrutiny, at a time when capital is relatively scarce and investor appetite limited, Russian issuers should consider anchoring their IPOs to the US capital markets.

NYSE’s large community of listed issuers benefit from access to the full depth of the world’s largest and most active capital markets as well as providing access to a diverse trading community in the US. Using the robust regulatory regime of Sarbanes-Oxley legislation that brings real credibility, issuers are put on par with other comparable companies as they compete for international capital.

As the world’s leading exchange operator of financial markets, connecting members to our community through our networks is at the core of what we do. We look forward to reaffirming our relationship with Russia’s investment community and anticipate the event will bring together global thought leaders with a common interest in the region as NYSE Euronext hosts The NYSE Russia Business and Investment Summit 2011.

 

 

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