Business owners will receive financial incentives to list their company shares on the stock market.
Updated State Support Program for Russian Small and Medium-Sized Businesses Launched
The Ministry of Economic Development of Russia has introduced an updated initiative aimed at facilitating small and medium-sized enterprises (SMEs) in securing funding via the stock market and investment platforms. This initiative was announced by Deputy Minister Tatiana Ilyushnikova.
The program offers subsidies to companies planning their initial public offering (IPO) of shares and those issuing exchange bonds. This move is part of the Russian government's broader strategy to double the capitalization of the national stock market by 2030.
Deputy Minister Ilyushnikova anticipates up to 30 companies will receive support in 2025, with this number increasing to around 40 in 2026 and potentially up to 50 in 2027. Over three years, the program expects to attract 50 billion rubles in funding, with a projected capitalization of 250 billion rubles.
According to Ilyushnikova, the pre-IPO stage is crucial for companies as it helps them adapt to financial markets, develop their image, and establish a loyal investor base. To participate, companies must focus on priority sectors, such as manufacturing, transport, information technology, science, and healthcare, and should not exceed an annual revenue of 2 billion rubles.
Companies interested in the program should implement projects in target economic sectors and comply with the eligibility criteria. Selection is expected to start in June-July 2025, with details to be published on the Ministry's official website.
This new initiative serves to broaden SMEs' funding options, reduce reliance on traditional sources, and bolster investor trust in Russian companies. By fostering a conducive environment for SMEs on the stock market, the government seeks to further stimulate economic growth and development.
I'm not sure if the finance provided through this program will be sufficient to address all the needs of the small and medium-sized businesses, given the number of companies expected to participate. The subsidies and potential capitalization remain significant, but more information is needed to assess their impact on the targeted businesses.
