The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Russian IPOs: Bankers warn that bubble might burst

Overvalued IPOs give cause for concern. Some bankers are becoming wary of damaging their reputation with rushed or over-valued Russian IPOs. Two banks dropped out of a deal last month and some analysts urge that caution be exercised in further IPOs.

Richard Ogdon, executive director of Uralsib bank, says: “There’s a risk of the IPO market being ruined by overexuberance.” His comment comes after Morgan Stanley dropped out last month from the IPO of Russian meat processor Cherkizovo after a disagreement over the company’s valuation.

Another book-runner, Russian brokerage Troika Dialog, later also walked away from the deal, leaving two Russian brokerages – Renaissance Capital and Gazprombank – as sole book-runners. Uralsib later joined the syndicate.

Morgan Stanley valued the company at between $500 million and $600 million, which is half what Renaissance Capital valued it at. Cherkizovo’s owners sided more with Renaissance Capital’s valuation so, after a dispute, Morgan Stanley walked away. The IPO eventually valued the company at $900 million, after a 27% stake was sold for $250 million.

Rich pickings in London

This year is expected to be a record year for Russian IPOs, with well over $10 billion set to be raised. Russian IPOs have been a huge cash cow for London banks, lawyers, PR firms, and even a former minister. In January, one Russian bank, Uniastrum, hired former UK chancellor of the exchequer Lord Lamont to be chairman of its advisory board in preparation for a London listing.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree