New York, London, Hong Kong… Moscow?

Russia may have the kind of official corruption that would make a Sicilian blush, a fairly weak grasp on the rule of law, a pair of would-be czars trading its top two political posts and, now, more orphans than it can give away. It also may have a stock exchange worth as much as the big one with the columns down on Broad Street.

The Moscow Exchange is going public, and wants the share-buying public to pay between US$4 billion and US$4.6 billion for it. By contrast, the London Stock Exchange has a market cap of about US$5.3 billion, and the New York Stock Exchange is selling itself—and the stock markets in Amsterdam, Brussels, Lisbon and Paris, and the super-desirable Liffe futures exchange—for US$8.2 billion.

Of course, buying the Micex may be a bit riskier than buying NYSE Euronext, what with everyone’s favorite former KGB agent already weighing in.

The listing—and whether it is viewed to be a success—has emerged as a key component in convincing more Russian companies to float shares in Moscow rather than in other locations such as London. Some foreign investors also need to be convinced that market reforms are taking hold.

“The Micex is an interesting business but it is also a bet on financial reform in Moscow,” said Bruce Bower, of Verno Capital, which holds a small stake in the exchange and is considering buying more in the coming offering.

Following the Moscow Exchange’s IPO announcement, President Vladimir Putin said all future state privatization offerings should take place in Russia, rather than dual listings in Moscow and London—a structure many state companies have employed before. Most Russian companies, while listed in Moscow, new largely trade in the form of global depositary receipts elsewhere.

Moscow Exchange Valued at $4.6 Billion [WSJ]

(hidden for your protection)
Show all comments

10 Responses to “New York, London, Hong Kong… Moscow?”

  1. Orphans says:

    We tried very hard to defend you Jon, but that's it.

  2. mrpink says:

    At least try to add footnotes?

  3. writersdrive says:

    This is such a great resource that you are providing and you give it away for free. Keep it up of your great work.

  4. You see, there are deals, but not "ofertones". Known phenomenon for the second time, vote-buying that at all who must demonize, make it clear-spending and stay him these cars, we put them and ask them pretty reasonably priced with finance option so that he would be benefit and we go home with our vehicle, secure and happy.

  5. Dosage Forms says:

    I am happy to read your post. Now you make it easy for me to understand and implement the concept. Thank you for the post.

  6. Sudirman says:

    Clermont Residence is located at Tanjong Pagar, Singapore's next business lifestyle hub in the Central Business District.
    Perfectly positioned within the Central Business District, Clermont Residence is within minutes of prominent cultural and lifestyle areas. With the prime location, it will bring you to the rich heritage and vigorous heart of the CBD, right in the middle of Tanjong Pagar.
    This is a Landmark locations, very close to Chinatown, Orchard Road, Raffles Place and Sentosa and all these locations are all so near, especially from the view of your private balcony.
    As the part of the integrated project Tanjong Pagar Centre, Clermont Residence rises as an iconic development of Tanjong Pagar skyline. The condominium offers prestigious and limited collection homes above GuocoTower. Set to be the tallest residences in Singapore, Clermont Residence only starts at 180 meters (equivalent to 50 residential storeys) and reaching up to 290 metres, offering unparalleled sea and city views.

    Clermont Residence, Tanjong Pagar Centre.

  7. I am very impressed with your blog you did a very hard job. and I appreciate that sharing a helpful post, great job!

  8. I agree with you. This post is truly inspiring. I like your post and everything you share with us is current and very informative, I want to bookmark the page so I can return here from you that you have done a fantastic job.