The results of the competitive selection of legal persons for joint PRE-IPO financing of companies preparing for the IPO in the MII sector of Moscow Stock Exchange have been announced. CJSC Finam and CJSC ALOR INVEST jointly with Moscow Seed Fund will finance companies preparing for the IPO in the MII sector.
The competition was organized and conducted by the Foundation for the promotion of venture capital investments in small businesses in science and technology of Moscow (Moscow Seed Fund) with the participation of OJSC RVC and OJSC Moscow Stock Exchange. The initiator of the competition was the Department of Science, Industrial Policy and Entrepreneurship of Moscow.
The limit on investment in one company is 10M RUR. The minimum size of the loan for one company is 1M RUR. Loans are granted at interest rates equal to the CBR refinancing.
CJSC Finam and CJSC Alor Invest will make their own decisions on the financing of an enterprise, taking into account that in case of funds’ allocation, the company will receive the loan from the Fund for the grace period. These funds will help companies to prepare for the IPO.
Partner Programs on PRE-IPO financing will certainly have a positive impact on the MII. Young innovative companies will be able to increase the quality of preparation for their IPOs. - Gennady Margolit says, the Executive Director of the Innovations and Investments Market of JSC Moscow Stock Exchange.
This tool of support, as well as other tools of the Fund, is based on the principles of public-private partnership. The decision on financing of a company is taken by private investors, and the Fund offers its support in turn. It is also very important that the Government of Moscow and of OJSC RVC supported the initiative of the Foundation to grant investment loans for low-interest - just over 8%, which should be a good incentive for the companies preparing for the IPO. Hopefully this will increase the number of companies involved in IPO in the MII sector of OJSC Moscow Stock Exchange - Alex Kostrov says, the executive director of the Foundation for the promotion of venture capital investments in small businesses in science and technology of Moscow.