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Russian IPO market: The phenomenon of underpricing
https://doi.org/10.32609/0042-8736-2025-10-104-130
Abstract
We identify the determinants of IPO underpricing among Russian companies, with primary attention to factors grounded in information-asymmetry theory. Using data on 116 real-sector firms over 2000—2024, we estimate a multiple-regression model and find that (i) belonging to the technology sector, (ii) the share of intangible assets, and (iii) the magnitude of the offer-price revision are positively associated with the initial return on Russian IPOs. By contrast, the percentage of shares placed into free-float at the offering is negatively associated with underpricing, and this negative effect becomes stronger after 2022. The results confirm the significant role of information-asymmetry-related factors in shaping underpricing in the Russian IPO market.
About the Authors
A. E. Segal
Sberbank of Russia
Alexander E. Segal
Moscow
A. A. Galich
Lomonosov Moscow State University
Russian Federation
Russian Federation
Anastasia A. Galich
Moscow
A. G. Mirzoyan
Lomonosov Moscow State University
Ashot G. Mirzoyan
Moscow
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Segal A.E., Galich A.A., Mirzoyan A.G. Russian IPO market: The phenomenon of underpricing. Voprosy Ekonomiki. 2025;(10):104-130. (In Russ.) https://doi.org/10.32609/0042-8736-2025-10-104-130
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