OREANDA-NEWS. April 28, 2010. The PBN Company unveiled a new IPO Tracker for Russia and CIS indicating that as many as 48 Russian and CIS companies are considering IPOs in the next several years.

The new IPO tracker (http://www.pbnipotracker.com) keeps a real-time tally of companies from Russia, Ukraine, Kazakhstan and other CIS countries that are reportedly considering issuing company shares on public exchanges. Since December 2009, 37 Russian companies, 10 Ukrainian and one Kazakh company have been identified in the media and other public sources as possible IPO candidates.

“After a devastating year for IPOs from the region in 2009, issuer and investor confidence in the capital markets is strengthening. Assuming that the global economic recovery continues, Russian and CIS listings clearly appear on the rebound,” said Peter B. Necarsulmer, Chairman & CEO of The PBN Company. “But we must be realistic. We would consider 2010 a very successful IPO year if one in five of the companies currently included in PBN’s IPO Tracker actually come to market in the next 12 months.”

One year ago, before the full extent of the international economic crisis hit Russia and the CIS, 124 companies were reporting plans for an IPO during 2009-13 timeframe, according to PBN’s 2008 IPO Pioneers Report. (http://www.pbnco.com/eng/files/IPO_Pioneers_4_Eng.pdf.) The vast majority of these planned floats were subsequently cancelled or postponed, and only 18 of these companies appear on The PBN Company’s new IPO Tracker for Russia and CIS as actively considering a listing. Only two companies — Human Stem Cells Institute (MICEX Ticker: ISKJ) and Exillon Energy (LSE Ticker: EXI) — completed IPOs in 2009, followed by UC Rusal’s (HKEX Ticker: RUAL) USD 2.2 billion IPO in January 2010 and Ukrainian Agro-Generations (NYSE Euronext Ticker: ALAGR) in March 2010.

INDUSTRY SECTORS AND IPO DESTINATIONS

The PBN IPO Tracker for Russia and CIS also identifies planned IPOs by industry sector and listing destination. To date, 11 of the companies thought to be planning IPOs are in the metals & mining sector, 6 are from media & telecommunications, 5 are from transport and aviation, 4 are agricultural firms, and 3 are from the technology and innovation sector.

Four in 10 companies remain undecided on which exchange(s) they will list, while 22 percent have chosen one of the two Moscow-based exchanges (MICEX or RTS) as a preferred destination. Of the international bourses, Hong Kong has caught up with London in popularity following Rusal’s primary listing there earlier this year. Sixteen percent of companies’ say they plan on listing in Hong Kong, and an equal percentage indicate London as their exchange of choice. Metals and mining companies in particular appear to be looking to the HKEX.

Necarsulmer noted that the creation of the Russian alternative investment market by Rusnano and MICEX in December 2009 appears to be attracting some companies, including in the technology sector, which would have a more difficult time listing on larger overseas markets.

KAZAKHSTAN

“Apart from the government’s sovereign investment fund Samruk-Kazyna, which is considering a float of KazMunaiGas, , no specific IPO candidates have emerged in central Asia,” said Bruce Wilson, Managing Director of The PBN Company’s office in Kazakhstan.

“While billions of dollars of specific IPO rumors are surfacing in Russia, Kazakh companies remain quiet. The only public discourse about IPOs here is coming from the local exchanges, hopeful bankers other IPO advisers, and journalists looking for a story,” said Wilson.

UKRAINE

Ukrainian companies are also lagging behind their Russian counterparts, due to the country’s sluggish economic recovery and years of political instability. “Beyond the successful float of Ukrainian Agro-Generations last month, out of 10 Ukrainian companies planning to list overall, it seems that only two have firm plans to go to market in 2010,” said PBN Senior Vice President and Ukraine Managing Director Myron Wasylyk.

“Ukraine’s largest industrial holdings having brought their businesses in line with international standards and are prepared to float,” Wasylyk added. “However, these holdings are waiting to see if conditions on the ground stabilize and how the country’s growth potential is evaluated by the international investment community.”

MEDIA SOURCES

The PBN IPO Tracker for Russia and the CIS provides the financial community, market participants and media with timely and accessible data on IPOs in Russia and CIS. The tracker will be updated daily based on reports in reputable Russian, Ukrainian, Kazakh and international news publications including the Financial Times, Kommersant, Vedomosti, Interfax, Reuters, Bloomberg, and Dow Jones, and other public sources.