November 03, 2005 07:00 ET

Leading Banker Predicts Russian IPO Market Will Reach $10 Billion in Next Five Years

JERICHO, NY -- (MARKET WIRE) -- November 3, 2005 -- IPORUSSIA, INC. (OTC BB: IPOR) announces that the list of Russian companies that are considering IPOs on foreign exchanges has seen a huge growth in just the last eighteen months, and continues to build.

IPORUSSIA provides advisory services to private companies in the Russian Federation, and the flourishing Russian economy continues to provide fertile ground for foreign investment. The benchmark Russian Trading System (RTS) Index recently set an all-time high. In addition, the number and volume of Russian IPOs, continues to increase exponentially.

The rapid development of the IPO market in Russia started last year, IPOs by Russian issuers were extremely rare before then. But last autumn, three companies, the Mechel steel group, Sedmoi Kontinent and Otkrytye Investitsii completed IPOs.

In a recent article in the Russian daily Pravda, Valery Petrov, general director of the Moscow Interbank Currency Exchange (MICEX) projected that the volume of Russian IPOs would reach $10 Billion by 2010. The Russian daily Kommersant profiled the recent boom in Russian IPOs, and observed that, "Many Russian companies are not aware of how laborious the process of entering the market is," (Kommersant Daily, October 13, 2005). The same article concluded that, "the IPO process is unstoppable."

This is precisely the niche market that IPORUSSIA was created to fill. With offices in New York, Moscow, and St. Petersburg, the company specializes in locating and identifying promising Russian companies, and guiding them through the complex process of participating in the global marketplace, a territory so unfamiliar to most Russian companies. IPORUSSIA has recently announced three separate agreements to provide advisory services to Russian companies.


IPORUSSIA, INC. offers business advisory services to private companies located in the Russian Federation that are interested in raising capital, usually by taking their companies public in the United States, as a means of obtaining capital for their companies and liquidity for their principals and other stockholders. IPORUSSIA's wholly owned subsidiary, IPOR Capital, LLC, is admitted as a member of the NASD and may, as a finder and/or consultant, solicit other broker dealers to manage or co-manage IPOs for Russian and other foreign companies. In addition, IPOR Capital may participate in private placements of securities to institutional and accredited investors.

This press release contains certain information that is subject to a number of known and unknown risks and uncertainties that may cause actual results and trends to differ materially from those expressed or implied by the forward-looking statements. These factors include, among other things, United States and global economic conditions, the acceptance in foreign markets of securities of companies primarily based in Russia, the Company's ability to attract clients who complete transactions, potential competition from investment banking firms, the Company's ability to attract, compensate and retain personnel with investment banking experience, the effects of compliance with governmental and NASD rules, the effects of the Sarbanes-Oxley Act of 2002 on the Company and prospective clients, the Company's ability to generate additional financing that may be required, the Company's dependence on its chief executive officer and the Company's limited operating history.

Contact Information

    Leonard W. Suroff
    Executive Vice President
    12 Tompkins Avenue
    Jericho, New York 11753
    Tel. (516) 937-6600
    Fax. (516) 681-3900