Singapore as a new venue for Russian IPOs
Don Agro's initial public offering in S'pore may set a precedent for Russian firms looking to access international capital.
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WITH the implementation of a free trade pact with the Russia-led Eurasian Economic Union (EAEU) paving the way for greater business links between Singapore and EAEU markets - which comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia - Singapore's capital markets could play host to a wave of initial public offerings (IPOs) by Russian firms.
The EAEUs' total gross domestic product (GDP) is estimated at US$1.9 trillion, and in terms of purchasing power parity (PPP) was estimated at US$5 trillion in 2018. The Russian economy, the sixth largest globally, is estimated at US$4.21 trillion on PPP terms.
Russia is also among the most resource-rich countries globally. A 2015 report for the European Parliament estimated Russia's subsoil wealth (oil, gas, coal and minerals) and other natural resources at US$75.7 trillion - which amounts to an immense opportunity for Asian investors.
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