Russia tech firm Astra to expand free float

Russian technology company Astra’s main shareholder Denis Frolov plans to offer shares in a secondary public offering (SPO) this month that could take the company’s Moscow free float up to 15%, it said yesterday.

Astra raised 3.5 billion roubles (RM178 million) in an initial public offering (IPO) in October 2023, one of a handful of share issues by Russian companies now characterised by small volumes raised and dependence on Russian investors after an exodus of Western capital.

Astra dominates Russia’s operating system (OS) market with its Astra Linux software.

The business has been growing quickly, with revenue increasing 77% last year, thanks partly to the exodus of Western technology after what Russia calls its special military operation in Ukraine.

CEO Ilya Sivtsev said the company’s market capitalisation had almost doubled since its IPO and that it now has more than 112,000 investors.

Increasing the free float would widen the company’s investor base and help in its quest to build net profit for dividend payments and increase the use of its products by existing customers, Sivtsev said.

Frolov plans to place 10.5 million to 21 million shares at up to 620 roubles per share, equating to 5%-10% of the company’s total shares, Astra said.

Listing 10% would bring the company’s securities into a major Moscow exchange index, widening the pool of investors eligible to buy shares.

The final price will be set no later than April 19. – Reuters