Importance of a successful overseas IPO
Making an initial public offering (IPO) is one of the most adventurous strategies a company can undertake. This is especially true for Russian companies conducting an international IPO. Despite many success stories, research shows that in general, Russian companies raise up to 20% less money than their foreign counterparts.
There is a widespread perception that Russian companies are opaque conglomerates offering little protection for investors outside of a small group of controlling stakeholders. The only way to break this stereotype is to create an effective corporate governance system which includes a Board of Directors with a strong and experienced independent non-executive constituency. An opinion survey has shown that investors would pay up to one-third more for stocks of Russian companies with good corporate governance (all else being equal).
Experts from Heidrick & Struggles have used their intimate knowledge of international Board searches in Russia and thirty other countries to analyse the Board composition of 60 Russian companies before and after an overseas IPO as the basis of this report.
See full Report, in pdf format.
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