ANALYSIS OF ISSUES AND TRENDS IN THE INTERNATIONAL IPO MARKET DEVELOPMENT
The paper provides a detailed study of the key issues of the modern IPO market. Features of initial public offerings of companies in actively developing economic sectors are considered. The paper analyses the investment effectiveness at the initial public offering stage, statistical data on changes in companies’ value after the IPO procedure. The purpose of this paper is related to the definition of development trends and analysis of imbalances in the primary securities market. The paper contains an industry-specific description of Russian companies that have conducted an initial public offering on the Moscow Exchange. The conclusions are made on a weak correlation between companies' financial performance and the price dynamics during the IPO. The interrelation between fundamental analysis indicators and IPO results are assessed. It is concluded that there is no direct relationship between financial performance of an issuer and stock price dynamics of its securities. At the same time, it is found that this feature is normally present only in the primary market, which is associated with a high innovation component of the IPO market’s issuers. The reasons causing high risks of investing at the initial public offering stage are explained in detail. The paper substantiates methods that allow to reduce investment risks and volatility of shares of the companies involved in initial public offerings. An approach ensuring the improvement of investment attractiveness of companies by increasing the role of the state in the primary market regulation is proposed. It is concluded that protection of investor interests must be associated with effective work of regulators in determining both volumes and price corridors during share offering in the primary market.