IPO as an effective financial instrument of Russian companies

This article is devoted to the study of initial public offering (IPO) as a strategic instrument of financing Russian corporate organizations. It analyzes the key features of the Russian IPO market, including the specifics of the regulatory framework, the volatility of the economic environment and the degree of development of stock exchanges. The main advantages of IPOs for Russian companies are discussed, including the possibility of attracting significant financial resources, increasing transparency and image of the company, as well as expanding the range of potential investors. At the same time, the disadvantages of this approach, such as high costs of preparing and conducting the offering, the need to disclose confidential information, as well as risks associated with market uncertainty and political factors, are also highlighted in detail. Special attention is paid to the factors that influence the success of IPOs of Russian companies. Such factors include macroeconomic stability, investment attractiveness of the sector, company reputation, quality of corporate governance and the choice of the optimal time to enter the market. Based on the analysis and empirical data, we formulate practical recommendations for optimizing the IPO process for Russian companies. The proposed measures include increasing the transparency of corporate reporting, strengthening the quality of corporate governance, effective communication strategy with potential investors, as well as careful selection of consultants and underwriters capable of ensuring a successful placement of shares on the market.

Authors

Publication Details

Journal
Vestnik of North-Ossetian State University
Published
2025-09-25
DOI
https://doi.org/10.29025/1994-7720-2025-3-275-279
Primary Topic
Economic and Technological Developments in Russia
Type
article
Field-Weighted Citation Impact
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article

IPO as an effective financial instrument of Russian companies

Zalina A. Kumaritova
Vestnik of North-Ossetian State University
Economic and Technological Developments in Russia
article

IPO as an effective financial instrument of Russian companies

Zalina A. Kumaritova
article en

Abstract

This article is devoted to the study of initial public offering (IPO) as a strategic instrument of financing Russian corporate organizations. It analyzes the key features of the Russian IPO market, including the specifics of the regulatory framework, the volatility of the economic environment and the degree of development of stock exchanges. The main advantages of IPOs for Russian companies are discussed, including the possibility of attracting significant financial resources, increasing transparency and image of the company, as well as expanding the range of potential investors. At the same time, the disadvantages of this approach, such as high costs of preparing and conducting the offering, the need to disclose confidential information, as well as risks associated with market uncertainty and political factors, are also highlighted in detail. Special attention is paid to the factors that influence the success of IPOs of Russian companies. Such factors include macroeconomic stability, investment attractiveness of the sector, company reputation, quality of corporate governance and the choice of the optimal time to enter the market. Based on the analysis and empirical data, we formulate practical recommendations for optimizing the IPO process for Russian companies. The proposed measures include increasing the transparency of corporate reporting, strengthening the quality of corporate governance, effective communication strategy with potential investors, as well as careful selection of consultants and underwriters capable of ensuring a successful placement of shares on the market.

Vestnik of North-Ossetian State University(3)
Openalex Percentile: Top 47%
Economic and Technological Developments in Russia
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