The Central Bank intends to increase the transparency of the IPO

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AK&M 20 January 2025 16:24

The Bank of Russia proposes to change the content of information disclosed by issuers and adapt it to the needs of a retail investor during an IPO. This is stated in the regulator's message with reference to the report for public consultations.

The Central Bank considers it appropriate to include the issuer's forward-looking indicators in the securities prospectus. At the same time, the summary of the prospectus should be short and clear, and contain key information about the issuer: financial indicators in comparison with previous periods, a description of the strategy and an assessment of development prospects.

According to the regulator, companies should also disclose information that is sensitive to investors, such as the planned and actual distribution of shares among buyers.

Prior to the IPO, information should be disclosed about restrictions on the sale of securities by the issuer and current shareholders, as well as the mechanisms used to stabilize the share price to reduce their volatility after the public offering of shares.

In addition, the Central Bank proposes to discuss the possibility of introducing regulation and standardization of services provided by the organizers of the placement.