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Companies can use IPOs as way to raise money when key rate high

CEO of Innopraktika Company Katerina Tikhonova emphasized that the state must create conditions for a smooth transition of Russian technology companies from budget-based to market-based financing instruments

MOSCOW, December 10. /TASS/. When the key rate is high and money hard to come by, as is the case in Russia today, big tech companies can sell stock as an alternative to borrowing, CEO of Innopraktika Company Katerina Tikhonova said during the Innovative Practice: Science Plus Business Congress.

"Addressing the issue of financing shortages could lie in leveraging market tools as an alternative to credit. For instance, initial public offerings (IPOs) could serve as such a tool," she said.

She emphasized that the state must create conditions for a smooth transition of Russian technology companies from budget-based to market-based financing instruments. One potential measure, she suggested, is for the Central Bank of Russia to offset IPO expenses for companies starting in 2025.

Tikhonova also highlighted financial and technological sovereignty as critical objectives for the Russian economy. However, implementing large-scale, import-substitution projects requires substantial investment. She noted that the investment boom in the Russian economy is one of key drivers of rising interest rates, among other things. "Profitability at the level of 20% is rare, making the key rate a critical issue that threatens to derail planned investment projects," she stressed.

Tikhonova called for measures to improve the efficiency of state support for high-tech enterprises amid financial stabilization challenges. She proposed a differentiated approach to preferential lending, suggesting the lowest interest rates should be reserved for companies involved in defense contracts and those with projects critical to technological sovereignty and national security.

She also advocated for incorporating special mechanisms for individualized loan restructuring within the framework of state programs. "This would address challenges faced by companies struggling with debt due to unilateral increases in loan interest rates," she added.

The 11th Innovative Practice: Science Plus Business Congress is being held on December 10. TASS is the official information partner of the congress.