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The idea of IPOs for state-owned companies has been actively discussed for over a year now — but with no tangible results: there’s still no list of potential participants or a timeline for offerings. Meanwhile, financial authorities are concerned there may not even be sufficient demand, citing the opaque nature of state firms, their unique decision-making processes, and high interest rates in the economy. So what’s really going on with state IPOs?
All About the Money
Over a year ago, President Vladimir Putin instructed officials to double the capitalization of the Russian stock market by 2030 — reaching 66% of GDP. One key lever for achieving this target is the public listing of companies with state participation. The national project “Efficient and Competitive Economy” specifies that at least 20 state-owned companies should be trading on organized markets. In May, Finance Minister Anton Siluanov said it would be impossible to double stock market capitalization without bringing state companies to the market.
At the St. Petersburg International Economic Forum, an entire session was devoted to what IPOs of state companies could look like on Russian exchanges. Siluanov mentioned that companies in the energy, transportation, and financial sectors could go public — but he gave no names or specific dates. Central Bank Governor Elvira Nabiullina, meanwhile, emphasized that state IPOs must be of high quality and not just for show. She also pointed out several characteristics of state enterprises that may make them unattractive to investors.
“An IPO of a state-owned company isn’t just about the government offering shares — it also requires a shift in how these companies are managed. Without that, such IPOs won’t interest investors,” Nabiullina noted.
Ahead of the forum, SberInvest held a survey among its users and found that 75% would consider buying shares of state-owned enterprises if they went public. Among the most anticipated issuers were Rosatom, Rusnano, Rostec, Roscosmos, Russian Railways (RZhD), and DOM.RF.
So far, only one state corporation — DOM.RF — has confirmed plans to go public, with its IPO expected later this year. No other companies have publicly declared intentions to list or indicated specific timelines. Forbes reached out to the Central Bank and the Finance Ministry for comments but received no responses. So where is this state IPO initiative headed?
Bad Timing
In 2023–2024, after a year of market silence following the start of the “special operation”*, Russia experienced a mini-boom of small IPOs. Most listings were of smaller companies, but their number was notable. In 2024, the Central Bank reported the highest number of IPOs in a decade. However, with the central bank’s key rate remaining high, issuer activity has gradually tapered off. In 2025, only one company — the crowdlending platform JetLend — has gone public so far, and that was not on the Moscow Exchange, but on SPB Exchange.
“High interest rates affect company valuations, so many issuers are waiting for rates to fall or postponing their plans until next year. State firms are no exception — they too are waiting for more favorable market conditions,” said Leonid Pavlikov, Managing Director for Equity Capital Markets at Finam.
With state companies, the stakes are even higher: a failed IPO could carry political costs and reputational risks. This makes these issuers especially cautious, added Sergey Nunuparov, Managing Director at PSK-Solutions. IPO activity may resume if there are clear signals of faster rate cuts, noted Maria Lukina, Senior Analyst at Sinara Investment Bank.
A (Not So) Attractive Directive
On the one hand, high interest rates are dampening enthusiasm for equity markets; on the other hand, there’s the presidential directive to double market capitalization — and a growing consensus that this goal is unattainable without involving state-owned enterprises. Yet government officials and managers don’t seem to find these goals contradictory, says Alexander Bakhtin, Investment Strategist at Garda Capital.
“Strictly speaking, there’s little motivation for them to rush into this form of privatization. It’s stressful, means losing some control, and introduces new reporting obligations. Many are likely to stall until a direct order comes from the top: You — now,” he said.
At the same time, there’s still plenty of time before 2030, and conditions could change, said Andrey Petrov, Director for Wealth Management at BCS World of Investments.
“Geopolitical and interest rate factors might subside in the foreseeable future. In that case, it might even be possible to double market capitalization without massive IPOs. Companies could start planning at least a few quarters ahead, and many more might be willing to list,” he noted.
The Underlying Issues
Even under improved circumstances, public offerings by state-owned firms could remain a questionable investment idea. One key reason, as noted by Elvira Nabiullina at the forum, is that state directives override corporate governance norms.
“Directive voting trumps any corporate code. If there’s a government directive, all board members appointed by the state will vote accordingly,” said the Central Bank Governor.
Lack of transparency, inefficiencies, weak minority shareholder influence, and heightened political risk exposure could all deter investors, said Anna Kazaryan, Head of Equity Research at Sirius Capital. Still, she noted, there are successful investment cases involving companies with state participation.
To make these companies more appealing, they need to operate more like market players: adopt regular international audits, improve investor disclosures, introduce independent boards, and implement market-driven dividend policies, said Nunuparov. Additionally, managers should be more incentivized to drive value creation through updated KPIs, added Petrov.
“A government-dominated economy — where over half is controlled by officials — is an anachronism,” says Bakhtin. At the same time, he believes the current governance system discourages investment and instills fear through state enforcement.
“Corporate governance alone won’t solve this. At any moment, people in uniform could walk into a boardroom, and no court will protect you. Everyone in the market understands this, and few have high hopes for privatization,” he concluded.
* In accordance with requirements from Roskomnadzor, Russian media must rely solely on official government sources when reporting on the special military operation in eastern Ukraine. Media are prohibited from using terms such as “invasion,” “attack,” or “declaration of war,” unless quoting official statements (Article 57 of the Russian Law on Mass Media). Non-compliance may result in fines up to 5 million rubles or blocking of the publication.
Elena Ruzleva