(Reuters) – Russian technology company Astra Linux on Monday said it was planning to list its shares on Moscow Exchange this month in an initial public offering (IPO), potentially breathing some life into Russia’s moribund equity capital markets.
At least 10 companies had been planning 2022 listings prior to Russia’s February invasion of Ukraine, but sanctions on Russia’s financial system and the exodus of Western bankers and lawyers has sorely limited share offerings.
Electric scooter firm Whoosh was the only Russian firm to hold an IPO last year, but its debut raised less than half its initial target and relied heavily on Russian retail investors for capital.
Steel pipemaker TMK raised 4 billion roubles ($40.7 million) at a secondary public offering last month, while other companies have completed small listings in 2023.
Astra Linux, which runs an operating system (OS) alongside other software solutions, supplies Russian government entities and state companies, including those in critical infrastructure, many of which were deprived of access to Western technology solutions after Russia’s invasion.
“Undoubtedly, the departure of Western vendors from the Russian market, the growing trend towards import substitution and technological sovereignty, and significant government support to the industry have had a huge impact on our business and the whole IT market,” CEO Ilya Sivtsev said in a statement.
Astra did not say how much the company hoped to raise in the offering, but Sivtsev said the listing would create additional opportunities for mergers and acquisitions.
Analysts in 2022 valued Astra at around 15 billion roubles ($152.7 million).
The company said existing shareholders would offer shares in the placement, with the IPO expected to result in a free-float of approximately 5%.
($1 = 98.2450 roubles)
(Reporting by Alexander Marrow, Editing by Louise Heavens)
