The Central Bank of Russia has published recommendations urging issuers with exchange-traded shares and prospective initial public offering candidates to devise strategies for increasing medium- and long-term shareholder value. The aim is to help investors and shareholders form expectations about share prices and dividend payments through a more standardised approach to how such strategies are developed, approved and disclosed. The recommended strategy document should be brief and clear, and cover the company’s general business, products and services, key financial reporting and operational performance indicators, market capitalisation data, dividends declared and paid over the past three to five years, and securities issued and in circulation. The Central Bank of Russia also flags total shareholder return as a possible key target indicator and expects objectives to be set for a horizon of three to five to ten years based on an assessment of current shareholder value, with explanations and planned measures where performance deviates from targets. The recommendations additionally focus on communication between issuers and investors, particularly retail investors who dominate the secondary equity market, with the stated objective of increasing confidence in companies’ strategies and plans and supporting higher capitalisation of the Russian stock market.
Central Bank of Russia 2025-01-22
Central Bank of Russia issues recommendations for listed issuers and IPO candidates to develop and disclose shareholder value strategies
The Central Bank of Russia recommends issuers with exchange-traded shares and IPO candidates develop strategies to enhance medium- and long-term shareholder value. These should include business and financial performance indicators, market capitalisation, and dividend history, focusing on total shareholder return. Improved communication with investors, especially retail investors, is emphasized to boost confidence and support the Russian stock market's capitalisation.