DOM.RF has priced its shares on the Moscow Exchange at the top of the announced range — ₽1,750 per share.
Institutional investors accounted for 70% of the funds raised, retail investors for 30%. The company’s market value was set at ₽315 billion.

Photo: Mikhail Grebenshchikov / RBC

The DOM.RF Group completed its initial public offering (IPO) on the Moscow Exchange, raising ₽25 billion from investors, according to the corporate disclosure website. The total size of the placed stake (10.1%) is estimated at ₽31.7 billion and consists of several components:

• ₽25 billion – main offering to institutional and retail investors;

• ₽2 billion – additional shares placed to support the stabilization mechanism;

• ₽4 billion – shares purchased to fund the long-term employee incentive program, to be managed by an external professional operator;

• ₽0.7 billion – shares bought by DOM.RF employees using their own funds.

The deal was priced at the upper end of the original range — ₽1,750 per share. The state’s share in the company fell to 89.9%.

Trading in DOM.RF shares under the ticker DOMRF began on Thursday, 20 November, at 16:00 Moscow time. In the first minute, the shares rose 1.71% above the offering price, but later corrected downward. As of 18:00, they were trading at ₽1,748.3.

The shares of the housing development institution were included in the first-level quotation list of the Moscow Exchange.

Taking into account the new share issue, DOM.RF’s market capitalization at the start of trading amounted to ₽315 billion. According to IFRS reporting, the group’s equity stood at ₽408.5 billion as of 30 September. Before the IPO, DOM.RF was valued in the range of ₽349–444.8 billion, or 0.85–1.1x book value.

How Demand for DOM.RF Shares Was Allocated

After the price range was announced, the order book was fully covered in a single day, RBC reported earlier. Bookbuilding continued until 13:00 Moscow time on 19 November. Sources familiar with the placement spoke of strong investor demand.

On 18 November, DOM.RF increased its target offering size from ₽20 billion to ₽25 billion.
“At the upper end of the current price range, we have received over 30 orders from all categories of institutional investors, and retail investors have also shown strong interest,” the company said at the time.

According to Kommersant, total demand at the close of bookbuilding reached ₽80–125 billion, or four to five times the initial offering volume.

DOM.RF later clarified that it had received over 40 orders from institutional investors and more than 50,000 orders from retail investors.
Institutionals bought 70% of the offering, private investors 30%. Among institutional buyers, priority was given to anchor investors, who received around 90% of the amount requested in their orders. These included Astra UA, VIM Investments, Ingosstrakh-Investments Asset Management, among others previously disclosed by the company.

“Allocation to institutional investors was determined taking into account the time an order was received: orders submitted on the first day of the preliminary bookbuilding period were treated as more preferable,” DOM.RF said in its disclosure.

There was also interest from foreign investors, but they have not yet entered the capital, DOM.RF CEO Vitaly Mutko told journalists.
“There is interest from a number of major funds; they went through internal committees, and the interest is there. I think their entry into the capital is a matter of the near future,” he said. At the same time, he noted that he cannot “look inside the portfolios” of Russian investors to see whose interests they might be acting in when buying DOM.RF shares.

Allocation to retail investors was uniform and did not depend on the broker, DOM.RF stated. Retail allocation amounted to around 15% of each order. The minimum guaranteed allocation for an individual investor was five shares, regardless of when the order was submitted. Retail investors who submitted more than ten orders received no allocation at all.

DOM.RF also prioritized its own employees who wished to participate in the IPO: such investors received 100% allocation on the amount of their orders.

How Authorities, Analysts and the Market View the Deal

The DOM.RF IPO is the first privatization transaction from the Ministry of Finance’s list through 2030.
Finance Minister Anton Siluanov told RIA Novosti:
“For us, it is important that DOM.RF’s transaction demonstrates that the public equity market is a viable source of funding for state-owned companies.”

“This is a first step so that other companies, which are still hesitant, also begin to consider going public, raising capital and participating in the financial market,” Siluanov said at the opening ceremony for DOM.RF’s trading.

Market Backdrop

In the weeks leading up to the deal, the Russian equity market had been under pressure. In October, the Moscow Exchange Index fell 4.7%, at times dropping below 2,500 points. Experts interviewed by RBC noted that conditions were not particularly favorable for IPOs.

Deputy CEO of DOM.RF and Chairman of the Board of DOM.RF Bank Maxim Gritskevich acknowledged in an interview with RBC that the market environment was “not very stable,” but expressed hope that the company would still be able to raise up to ₽30 billion.

By the close of trading on 19 November — the day before the IPO — the Moscow Exchange Index had risen 3.24% to 2,646.02 points, and continued to climb on the morning of 20 November. The positive sentiment was driven by expectations of progress in resolving the conflict in Ukraine. The rally accelerated after Politico, citing a senior U.S. administration official, reported that a peace plan could be agreed as early as this month or even this week.

“We entered this market, and I am very pleased to say that we did not make a mistake — neither in the step itself nor in timing,” Mutko said of the placement. “People in many offices told me: ‘What a time you’ve chosen… maybe later, maybe this, maybe that.’ Well, you can only prepare so much. As the saying goes, the road is taken by the one who walks it. We had to make this step despite all the difficulties — and we did it.”

Valuation, Discount and Investor Perception

According to analysts surveyed by RBC, DOM.RF floated at a P/E multiple of 3.3–3.6 and a P/BV multiple of 0.61–0.77, implying a discount to Sberbank.

Andrey Goncharenko, Deputy CEO of PSK‑Solutions, notes that the valuation “falls within the range for major financial-sector players, but at its lower bound.”

“The main drivers of underpricing are both the generally weak equity market and investor caution toward DOM.RF’s hybrid business model. It is simultaneously a bank, a mortgage institution and a developer, and the market traditionally applies a discount to such mixed structures,” he says.

“We also do not rule out that expected pressure on mortgage margins and a potential slowdown in the construction sector added further downside. As a result, investors chose a more conservative equilibrium point, and the deal went through at roughly 10–20% below investment banks’ initial valuation benchmarks,” Goncharenko concludes.

“The market is currently valuing all companies in the sector at a substantial discount to their fair value. Across the companies under our coverage, the average discount is around 23%,” notes Olga Naydenova, Senior Analyst at Sinara Investment Bank.

Pricing with a discount was the right strategy, says Leonid Pavlikov, Managing Director for Equity Capital Markets at Finam:
“Investors need a clear incentive to buy a new stock versus alternatives already listed on the market.”

Given current conditions, he considers the IPO successful: “The book was oversubscribed, pricing was set above the upper end of the initial range, and free float was formed without the state selling down its stake.”

“For a market that only recently was digesting much smaller private IPOs and in 2025 has seen just two IPOs, the largest of which was only ₽2.1 billion, this offering is both large and a well-structured benchmark,” Pavlikov adds. “For the Moscow Exchange and the local equity market, such volume is important because it proves the market’s ability to absorb tens of billions of rubles in a single placement and creates a reference point and comfort level for future deals by state-owned companies and major private issuers.”

“Compared with other IPOs, the deal size is significant. However, the recent VTB placement was considerably larger,” notes Alexander Golovtsov, Head of Research at PSB Asset Management.

Will DOM.RF’s IPO Open the Door for New Offerings?

“Overall, other companies may view DOM.RF’s placement as a successful case and decide to take a similar step — especially those that have already done preparatory work and are technically ready to become public,” says Artem Perminov, Senior Analyst at BCS World of Investments.

“Liquidity has certainly been absorbed by this deal, but it should not seriously hinder new offerings — particularly from relatively small companies,” adds Dmitry Alexandrov, Head of Research at AVI Capital. “I wouldn’t say that this IPO itself opens a wide window, but new placements this year are quite possible, provided valuations are reasonable and the external backdrop remains positive.”

DOM.RF’s placement confirms that large IPOs are possible, but only under certain conditions, believes Andrey Goncharenko.

“There needs to be a moderate, transparent valuation that offers investors a discount, and a stable profit model confirmed over several years. Companies with similar asset quality can indeed consider going public. But for riskier or more cyclical businesses, the market remains selective, so it’s too early to talk about a fully open IPO window,” he says.

New offerings following DOM.RF’s IPO are possible, but the key factors will be macro conditions and overall market dynamics, Pavlikov concludes.

RBC, November 20, 2025

This article has been translated to English by PSK‑Solutions LLC. The original version in Russian is available here.

This is an unofficial translation provided for informational purposes only. All rights to the original content belong to the original author(s), and no copyright infringement is intended. While we strive for accuracy, slight discrepancies may occur in the translated version.