Moscow Exchange, or Moskovskaya Birzha OAO (MCX:MOEX), today announced that it plans to set up a new segment at its Innovation and Investment Market (IIM), the establishment dedicated to innovative and high-tech enterprises with high growth potential.
The novel premium segment, to be called IIM-Prime, adds to three existing IIM segments: iIM sector, iiM-2 sector and IPOboard.
The new addition is a part of a new strategy for IIM, unveiled at the St. Petersburg International Economic Forum seeking to boost the investment appeal of Russia’s innovative companies. The new strategy was approved by the Coordinating Board of the IIM, chaired by RUSNANO Executive Board Chairman Anatoly Chubais.
IIM-Prime will include issuers that meet the Exchange’s Level 2 List requirements. Issuers of shares must have a market capitalization of at least RUB 6 billion (USD 111.8 million), IFRS financial statements, at least two Independent Directors and a free float of more than 10% (or free float market value of above RUB 1 billion). Issuers of bonds must have a good credit rating and total nominal value of issued bonds totaling at least RUB 1 billion.
The new strategy will also require all issuers on the IIM to comply with stricter requirements such as market capitalization of at least RUB 150 million (compared to current level of RUB 50 million), IFRS financial statements and evaluation of market capitalisation by a listing agent.
Development of pre-IPO and post-IPO instruments is also on the agenda. The investment group Da Vinci Capital and Russian Venture Company (RVC) have established a fund to invest at the pre-IPO stage via IPOboard. The program of soft lending against shares is to be launched by the Moscow Seed Fund. The Foundation for Assistance to Small Innovative Enterprises in Science and Technology will help issuers to recover their expenses.
The strategy also backs wider analytical coverage of issuers from the IIM and innovative sectors of the economy.
Gennadiy Margolit, Managing Director of the Innovation and Investment Market said:
“Our task is to provide Russia”s innovative companies with the infrastructure and all necessary facilities to access funding on the domestic capital market at all stages of the business life cycle. We work with high potential companies and give them all the assistance they need to prepare for an IPO. Additionally, we are implementing programs to boost liquidity and attract new local and international investors for securities already trading on the market.”
To view the official announcement by MOEX, click here.