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  • Positioning Russian multinationals IPO tools in the structure of external equity financing

Positioning Russian multinationals IPO tools in the structure of external equity financing

TERRA ECONOMICUS, , Vol. 11 (no. 1.3),
p. 65-70

Multinational corporation activity, optimizing processes of formation of the global economic system destroying borders of national economies, connecting their at the same time strong trade and financial relations, positions instruments of public placement of shares. High rates of economic growth in the country cause the steady growth of number of the multinational companies which meet requirements of an exit of public placements and conditions of positive placement of the actions in stock market. The number of multinational corporation which diversify financing sources increases, respectively reducing a share of more expensive proceeds of credit and increasing the volume of cheaper funds raised at the expense of sale of shares. Among the classical types of external financing available to the Russian multinational corporations, it should be noted participation financing which assumes attraction of additional investments from external resources of the capital. So increasing greatly contribution assets by external financing, the investor, respectively gets additional profit. The choice the multinational companies of these or those instruments of attraction of financial resources is defined by a ratio of cost of mobilized means and risks to which the company is exposed when carrying out these operations. In structure of sources of external participation financing the Russian multinational companies one of effective tools is public placement of shares. For the Russian multinational corporations attraction of necessary money through initial public offering, happens to an entry of the company into the open market and placements of shares among primary investors. Thus primary public placement is used as the tool in structure of sources of external participation financing of multinational corporation that promotes increase of investment activity and improvement of investment climate in the country. Primary public placement allows multinational corporation to receive necessary financial resources for business development, but nevertheless in the Russian economy there are the factors disturbing to active development of initial public offering. Excessive concentration of a turn of the Russian securities market doesn't promote growth of public placement and the circulation of stocks. To public placement of shares by the Russian companies stir not settled questions of property. Insufficient development of the Russian institutional investors, legislative ban on investment of pension means and means of mutual investment funds in primary public placement lead to reduction of number of participants of the market of primary public placement.

Keywords: multinational corporation; public placement of shares; foreign portfolio investments; globalization; stock market

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606