Russian tech firm Astra eyes $700 million valuation as it sets IPO price range

Russian technology company Astra on Thursday set the price range for its Moscow initial public offering (IPO) at 300-333 roubles per share, corresponding to a market value of 63-69.9 billion roubles ($632-$701 million).

Astra’s listing of 10.5 million shares, equating to a free float of about 5%, could breathe some life into Russia’s moribund equity capital markets, which have been starved of deals since Moscow despatched troops to Ukraine in February 2022.

Astra dominates Russia’s operating system (OS) market with its Astra Linux software. It offers a range of software solutions to Russian government entities and state companies, including those in critical infrastructure, many of which were deprived of access to Western technology after Russia started what it calls its “special military operation” in Ukraine.

Astra has sharply increased its share of corporate clients to 70% in the first half of 2023, it said in a statement, up from 28% in 2020.

“Additional drivers of our growth in the medium- to long-term will be the ongoing trend towards import substitution and the digitalisation of all sectors of the economy, the departure of Western vendors from the Russian market, increasing information security requirements and significant state support,” CEO Ilya Sivtsev said.

The books will open from Thursday until Oct. 12, Astra said. Trading under the ASTR ticker on the Moscow Exchange should begin on Oct. 13.