Photo: Ruslan Shamukov / TASS

The Housing Development Institution DOM.RF is set to hold its IPO on the Moscow Exchange this week — expected to become the largest public offering in recent years. What makes this IPO unique, and what should investors understand about DOM.RF’s business model?

DOM.RF plans to offer shares at ₽1,650–1,750 each, valuing the company at up to ₽283 billion. The offering will consist of shares issued through a new share placement (up to 28.55 million shares). The Russian government will remain the company’s majority shareholder.
The subscription period runs until 19 November, and trading is scheduled to begin on 20 November, with the securities already included in the first-tier listing of the Moscow Exchange.

CEO Vitaly Mutko previously told President Vladimir Putin that the company aimed to raise ₽15–30 billion, placing around 10% of its shares. Following the launch of the subscription process, DOM.RF said it expects to raise at least ₽20 billion. According to analysts at BCS World of Investments, this is set to be the largest IPO in Russia in several years.

A Business With No Direct Analogues

Throughout its history, DOM.RF has operated across multiple segments: mortgage lending, developer financing, completion of distressed residential projects, and integrated territorial development. Despite its diversification, all business lines revolve around the housing and construction sector.

DOM.RF includes a bank specializing in mortgages and project financing, as well as divisions responsible for the redevelopment of underutilized federal land, rental housing, securitization, and other auxiliary businesses — including the Shcherbinsky Elevator Plant.

According to its 9M 2025 presentation, the largest part of DOM.RF’s asset structure is its loan portfolio, totaling ₽4.8 trillion out of ₽5.8 trillion in assets. Other assets include investment securities (₽304.8 bn), investment property (₽129.8 bn) and ₽392.3 bn in other assets.

“DOM.RF occupies a unique niche in the Russian market due to its dual role: participation in the construction sector and its exclusive mandate to activate federal land for development,” says Nikita Bredikhin, Senior Investment Analyst at Go Invest.
“The most accurate way to describe the company is as an infrastructure-financial development institution with a banking license, operating at the intersection of the mortgage and construction markets,” adds Emil Safarov, Analyst at PSK‑Solutions.

In its IPO review, Finam compared DOM.RF with the U.S. mortgage agencies Fannie Mae and Freddie Mac, which have supported the U.S. mortgage market since 1938 by purchasing loans and converting them into securities. They cover about 70% of the U.S. mortgage market, but their risk appetite contributed to the 2008 housing crisis.

Almost a Bank — With Specific Features

Many analysts believe DOM.RF should primarily be compared with publicly listed Russian banks, given the dominance of lending within its balance sheet.

“The core business is developer financing and mortgage lending, similar to many banks. The banking segment forms the majority of both the balance sheet and the P&L,” says Olga Naydenova, Senior Analyst at Sinara Investment Bank.

“Sberbank also operates businesses unrelated to traditional banking, yet it remains a bank at its core. DOM.RF’s land-development operations resemble investment banking services, earning commissions for structuring and executing transactions,” adds Artem Perminov, Senior Analyst at BCS.

Analysts often benchmark DOM.RF’s valuation against Sberbank. According to Tatiana Simonova, Portfolio Manager at General Invest, DOM.RF’s IPO valuation implies a 20–25% discount to Sberbank.
“At this valuation, the company looks attractive: it is comparable to Sberbank in asset size and return on equity and has unique competitive advantages,” she notes.

Strengths and Risks for Investors

How stable are DOM.RF’s fundamentals?
For the first nine months of 2025, the company reported ₽62.3 billion in net profit — up 7.4% year-on-year. Net interest income totaled ₽115.9 bn, and operating income ₽113.3 bn.
“DOM.RF’s financial indicators appear robust, with a cost-to-income ratio of 25.4%, which reflects strong operational efficiency,” says Dmitry Tsarkov, Head of Trading Operations at GBIG Holdings.

DOM.RF also has an approved dividend policy targeting 50% of IFRS net profit, which implies a 12.7–14.2% dividend yield at IPO price — considered high for the Russian market.

Another advantage is the company’s status as a state development institution, which may reduce systemic risks, notes Emil Safarov of PSK‑Solutions.

However, concentration risk remains. Because DOM.RF is heavily tied to the housing construction sector, any slowdown in the Russian economy or a prolonged period of high interest rates could affect demand for mortgages and new housing, warns Igor Dodonov, Analyst at Finam.

Credit risk—particularly within the project finance portfolio—is highlighted by Artem Perminov as the company’s main vulnerability. While project finance is a relatively low-risk corporate lending segment, an economic downturn could significantly impact DOM.RF’s business.
A reduction in government-subsidized mortgage programs could also be a negative factor, adds Tsarkov.

Elena Ruzleva

Forbes, November 18, 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.