Picking Your Information Technology: A User's Guide
Revised Article:
IT companies and cybersecurity providers in Russia are playin' it cool with the IPO scene this year. An' the reason? You guessed it - the interest rates be havin' a big impact. After the central bank's key interest rate drop to 20% in June, these tech firms are considering going public. But they ain't rushin' it, holdin' out for a positive market climate.
One such company, "Solar" (a subsidiary of "Rostelecom"), is ready to dive in the public pool, according to Igor Lapunov, their CEO, but they're keepin' an eye on the market. And they ain't the only ones. Companies like Rubytech, software developer "NanoSoft," and maybe even VK are eyin' growth through IPOs.
Now, you might think that with 15 new issuers goin' public in 2024, things would be hoppin' this year. But nope, ain't nothin' yet. Some say it's 'cause of the ineffective long-term savings mechanisms and broader market inertia. Others say state-owned firms be holdin' off on IPOs 'cause high interest rates ain't makin' it financially attractive to go public.
But fear not, tech enthusiasts! Experts predict that if Russia starts lowerin' those interest rates, they could reach 17-18% by fall. That could mean funds movin' from deposits to the stock market, which could open up opportunities for companies hopin' to go public. After all, as Elena Romanova, director of investor relations, put it, the market's waitin' for a softenin' of rhetoric and geopolitical tensions.
So, what about those companies that are already public? Well, they're seein' the benefits. Tech companies are less leveraged, valued higher by the market, and receivin' state support for IPOs. But there's a catch - the current level of available liquidity for IPO deals is low, makin' big placements a challenge. But smaller deals with reasonable valuations have a chance of success.
Now, you might wonder why these companies are even botherin' with IPOs in the first place. Well, it ain't just 'bout raisin' money, it's 'bout attractin' funding and promotin' the business through its public status. And for smaller placements, it's easier to get the cash flow at high interest rates. But for tech companies, it's also 'bout keepin' those valuable employees on board through equity-based incentive programs.
So there ya have it, tech companies in Russia (and maybe elsewhere) are treadin' carefully when it comes to goin' public. It's all about ridin' the high interest rate wave and waitin' for the perfect moment to make a splash. And while the crypto sector be seein' strong growth, ain't no IPO action yet. Guess we'll just have to wait and see what happens!
Companies like Solar, Rubytech, NanoSoft, and possibly VK are thinking about growing through Initial Public Offerings (IPOs), but they're holding out for a more favorable market climate. High interest rates are making it financially less attractive for state-owned firms to go public, according to some experts.
