The Moscow Exchange invited the Central Bank to consider additional incentives for IPO issuers

Moscow Exchange (MOEX: MOEX) suggested that the Central Bank consider additional measures to support issuers that stimulate their entry into the stock market, reported Interfax. For these purposes, it is proposed to extend the national project “Small and Medium Enterprises” until 2030 and extend its effect to the segment of small technology companies and SME+ companies (with revenue up to 10 billion rubles).

The Moscow Exchange’s proposal is contained in a letter to the Service for the Protection of Consumer Rights and Ensuring the Availability of Financial Services of the Central Bank, which is cited by Interfax. According to the text of the letter, government support measures for small and medium-sized companies entering the stock market have proven to be effective. During the period of operation of this mechanism in 2019-2023, the volume of bond placements by SME issuers increased to RUB 34 billion.

As part of the national project “Small and Medium Enterprises,” the Moscow Exchange proposes to provide for partial subsidization of the costs incurred for the placement of shares. The current criteria for SME subsidies, according to the trading platform, are holding back the development of the IPO market. They assume that the company employs no more than 250 employees, and the revenue of SMEs does not exceed 2 billion rubles.

In addition, to encourage non-public companies to enter the market, the Moscow Exchange calls for an increase in tax deductions to cover the costs of organizing an IPO and supporting listings. The pre-IPO trading platform offers to conduct it on the terms of a public-private partnership. The press service of the Central Bank told Interfax that the letter had been received and would be discussed with interested parties.

High-tech companies in the small and medium-sized enterprise (SME) segment can place securities in the “Growth” and “Innovation Market” sectors on the Moscow Exchange. They can also subsidize the costs of issuing shares listed on the stock exchange. In addition, the Central Bank provides pre-IPO financing for such companies, listing grants (if it is a small innovative company), as well as preferential lending with the participation of development institutions.

On February 29, President Vladimir Putin, in his address to the Federal Assembly, instructed to accelerate the launch of a special mechanism for the initial public offering of shares of companies that operate in priority high-tech areas. According to the president, it is necessary not only to speed up the mechanism, but also to compensate companies for the costs of placing shares.

Lusine Balasyan