The Kremlin’s DOM.RF State Corp raises RUB 25bn via IPO

Author: Christopher Kenneth Section: Economy

Issue: The current edition: December 2025, Vol. 2, Issue № 12

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Russia’s DOM.RF State Corporation (DOM.RF) held the initial public offering (IPO) of its shares in November at the Moscow Stock Exchange (MosEx), raising 25bn rubles in the process, according to the official data from the state corporation and MosEx.

The placement took place at the maximum stated asking price per share – 1,750 rubles. The free float now stands at 10.1%, reducing the state's stake to 89.9%. Nearly 70% of the raised funds came from institutional investors, while 30% originated from retail investors. This placement valued the capitalization of the state-owned company at 315bn rubles. Its shares are now traded on the MosEx under the DOMRF ticker and have now been included in the exchange's Level 1 quotation list, as per the company’s and exchange’s official statements.

Commenting on the DOM.RF's IPO, Vitaly Mutko, the state corporation’s CEO, noted the interest of several major funds in acquiring stakes in the company. DOM.RF has opened a new chapter in its history and the history of the entire Russian stock market. The IPO is a critical part of the company's development strategy, which will ensure dynamic business growth, boost shareholder value and the development of the Russian housing sector, he added.

The Dom.RF’s IPO is the first privatization deal on the Russian Finance Ministry's list scheduled between now and 2030, Finance Minister Anton Siluanov, noted, commenting on the state’s company’s shares offering at the shares trading opening ceremony on the MosEx. The Dom.RF’s IPO deal has demonstrated that the Russian public equity capital market is an accessible source of investments for state-owned companies, the finance minister continued, adding this first step will encourage the other Russian companies to consider undergoing IPOs, raising funds from the public and participating in the financial market.

The launch of DOM.RF shares trading at MosEx marks an important step in the development of the Russian stock market and a strategically important economic sector. Millions of investors today have a new opportunity to influence the future of housing construction in Russia, MosEx Board Chairman Viktor Zhidkov said at the opening ceremony, noting the DOM.RF's IPO is the largest on the exchange in recent years. The offerings of this size will create a significant long-term multiplier effect, better meet the needs of institutional investors and contribute to the emergence of a class of active retail investors, Zhidkov added, noting these offerings are powerful market capitalization growth drivers.

DOM.RF management plans to use the funds raised from the IPO for project financing. Specifically, a part of the funds will be used to finance the construction of approximately 1mn square meters of residential facilities, which will allow circa 15,000 Russian families to improve their current living conditions, Mutko noted, as he explained the details and strategic objectives of the corporation’s IPO at a summer meeting in the Kremlin with the Russian president, Vladimir Putin. The rest funds will be used to develop infrastructure in Russia's regions and socially responsible businesses across the country, Mutko said, noting DOM.RF plans to become a company worth $11tn in assets by 2030, representing a two-fold increase their values, compared to today's level.

DOM.RF, a state-owned financial institution exclusively focusing investments and related financial services in the residential real-estate sector, was created by the Kremlin in 1997, to facilitate the implementation of its strategic housing policies in the country, as per its official data. 

By Christopher Kenneth