According to Alfa-Bank analysts, in 2007 the expected volume of IPOs might grow to $30 billion, or twice the amount seen in 2006. The success of such placements will depend on the condition of global equity markets. Year to date, Russian companies have already raised $10.6 billion through IPOs and other equity issues.

Christopher Weafer, Alfa-Bank's Chief Strategist, noted that of the $30 billion in new equity issues planned for 2007, nearly $24 billion (66%) will be accounted for by state-run companies in the banking and electricity sectors. "It is anticipated that the majority of these funds will be provided by strategic as well as domestic financial investors. Such an outcome would be even more likely should global markets continue to remain volatile, entailing lower demand for new issues in developing economies", said Weafer.

The State remains the largest investor in the Russian stock market with a current share of $403 bln, or nearly 40% of GDP. In 2007, this figure will grow as a greater number of state-run companies enter the market with share offerings. It is expected that in 2007 foreign investors will be "invited" to contribute up to $10 billion of the planned $30 bln. Of the $17.6 bln amount raised by Russian companies in 2006, nearly $6 billion came from foreign investors.