‘The shares of Sberbank of Russia going through the so-called ‘people’s IPO’ are definitely not attractive for most investors. To start with, it is unclear how the money obtained in the course of the initial offering is going to be used, so the funds are likely to be inefficiently ‘dispersed’. Then, it is the Central Bank of Russia that is acting as the underwriter, and this bank is allowed by the central financial authorities to sustain funds through issuing shares and securities. So the stock floatation is meant for something different from traditional investment purposes,’ says Vsevolod, the General Director of Blagodat Securities Investment Company.

‘What is more, the share price might fluctuate significantly at first; everything will depend on the participation of risk capital and the possibility of refinancing one’s stock operations on the security of these shares. All in all, the share price will be determined by the price set after February 19, 2007. Even now, the volatility is dramatic enough,’ Mr Chaschin said.