Oversubscription and discount naturally raised Europlan shares on the first day of trading

Multiple oversubscriptions for shares of the leasing company Europlan at the IPO led to a sharp increase in prices in secondary trading: in the first minutes, quotes soared by more than 20%. However, the speculative mood did not last long, and at the end of the auction the quotes were only 8.6% higher than the initial offering price. Professional participants believe that the stock’s growth potential remains, however, the company operates in a fairly competitive segment, especially from the subsidiaries of large banks.

The first day of secondary trading in Europlan shares on the Moscow Exchange on Friday, March 29, was very lively. At the beginning of the day, the company set the IPO price at the upper limit of the initial range – 875 rubles. At the same time, the volume of demand exceeded the volume of supply many times over. Therefore, most of the unrealized orders were transferred to exchange trading. In the first minutes of trading, the price soared by 22.3%, to 1,070 rubles. for paper. However, the quotes did not stay at these values ​​for long and quickly dropped to the level of 1 thousand rubles, and closed at around 950 rubles, 8.6% higher than the placement price. Over four hours of trading, their volume exceeded 5.1 billion rubles, which is more than the trading volumes at the main session of other issuers.

The increase in value on the first day of trading is explained by excess demand. The day before the deadline for collecting applications, oversubscription was more than four times (see “Kommersant” on March 28). But it is the last day that is the busiest for submitting applications, so it is likely that the oversubscription could be six to seven times, says Andrey Petrov, director of customer relations at BCS World of Investments. Oversubscription was very high, so for applications exceeding 100 thousand rubles. Less than 5% of the application volume was satisfied, noted Dmitry Alexandrov, head of the analytical research department of the investment company IVA Partners. As a result, according to Capital Lab partner Evgeny Shatov, before the start of trading, there were a large number of orders to purchase shares in the order book at a price of 1,225 rubles.

At the same time, institutional investors actively participated in the Europlan IPO. Their share accounted for 43% of the total placement volume, the rest came from private investors. Similar proportions, according to the Moscow Exchange, were observed in the placements of YuGK, Carsharing Russia, and Diasoft.

The company gave a discount to the market valuation of investment banks, says Arikapital investment strategist Sergei Suverov. The fair value of Europlan is RUB 1,041–1,166. per share, which implies an upside of 7% to current quotes, believes Tsifra Broker analyst Anna Buylakova. At the same time, the volatility was probably created by speculators who wanted to make money immediately after the start of trading, but then took profits, Mr. Suverov believes.

Professional participants believe that the main risk for the company is fierce competition from other players in the leasing market, in particular, according to Mr. Shatov, from subsidiaries of large banks. The conservative price target for the security is 1200–1300 rubles, the growth potential for the value of Europlan shares is 30% by the end of the year, Mr. Shatov summarizes.

The dynamics of the stock quotes of the parent company SSF on Friday was negative, the price decreased by more than 3%. Over the previous month and a half, the company’s capitalization has more than doubled, but the growth is most likely over for some period; a classic fixation on the fact of news is not excluded here, Mr. Petrov notes.

Ksenia Kulikova