The Bearish Bear

Some Russian stocks are either under-performing or were overvalued at their initial public offerings. There have been some notable successes in the market recently like Novatek a Russian gas company which raised $966 million at its IPO and has seen its share price rise 150 per cent since then. Unfortunately for the tyre business, Amtel-Vredestein has not faired so well.

A recent Wall Street Journal report on the subject described AV stock as poorly performing. Last November AV floated for $11 a share, but has seen its share value drop 22.7 per cent.

Some 30 Russian companies are preparing IPOs for the next 18 months, as the country’s stock market prepares for a heightened period of activity.

Sibur Russian Tires is currently believed to be considering an IPO or a possible merger.