Promsvyazbank, one of Russia’s largest privately-owned banks, has set the price range for its Initial Public Offering (IPO) on the London Stock Exchange at $10-12 per Global Depositary Receipt, the bank said on Wednesday.
The price range indicates Promsvyazbank, one of Russia’s top thirty lenders, should raise $345-414 million from the London IPO.
The bank intends to float up to 30 million GDRs, with one GDR representing 7.500 ordinary shares. The Federal Financial Market Service has allowed Promsvyazbank to place up to 25 percent of its stock abroad.
Promsvyazbank, controlled by the Ananyev brothers who also have holdings in information technology, media, insurance, industrial companies and real estate, announced in late September it would hold an IPO of its shares and Global Depository Receipts (GDRs) in Moscow and London.
The price range for a share offering on the Moscow Exchange has been set at $13.33-16 per 10,000 ordinary shares.
Prime news agency earlier reported, citing sources, that Promsvyazbank planned to raise at least $500 million from the IPO in London and Moscow.
“Ordinary shares will be offered to investors in and outside Russia while GDRs will be sold outside Russia. The offer will include the sale of existing ordinary shares owned by Promsvyaz Capital B.V. in the form of ordinary stock and GDRs,” the bank said in a statement.
Promsvyazbank intends to use IPO proceeds to strengthen its capital position and improve its capital adequacy ratio, contribute to the bank’s development and help implement its strategy aimed at expanding its retail, small and medium business segments.