[Sergey Yankovski, Russia News Contributor]
RT.com: Notwithstanding the sad experience of several Russian companies that were removed from the London Stock Exchange in February due to critically low investors’ interest, as reported by RT.COM, Nomos Bank, a recent Russian IPO has done quite well, thank you very much!
The Russian bank recently completed its initial public offering which increased its capital by a massive amount of $718 million which makes it the most successful IPO ever of a privately owned Russian financial institution. Twenty two per cent of the bank’s shares were sold for an affordable $35 per share and $17.50 per global depositary receipt and according to reports, stock speculators had profited more than twofold from participating in the bank’s IPO.
The total offer included 5.5 billion roubles of newly issued shares as well as the existing shares of one of the minor shareholders.
RT.COM reports that according to Mark Rubinstein, Head of Research at Metropol, the float: ‘indicated the degree of investor interest in Russian banks. “The successful placement underscores the attractiveness of the Russian financial sector. GDRs were priced at USD 17.5 each. The price per share implies a 2011E P/BV of 1.5x, a 15% premium to the median for Russian traded banks, according our estimates.”
Specialists are saying that the main reason for Nomos’ popularity is that unlike others before it which had disastrous IPOs, its considerable free float (in that the majority of its shares were not held by large owners and could not be classified as ‘restricted’ stock) had made it very attractive to the market.
- Nomos Bank London IPO sees listing record for private Russian bank (rt.com)
- Sberbank placement to go to market as interest in financials mounts (rt.com)
- Equity issue lessons from the Rusal IPO path (rt.com)
- Russian IPOs in London: successful, planned, postponed (telegraph.co.uk)
- David Kuo: Russian success is no riddle (independent.co.uk)
- Russian Helicopters IPO to lift off on $500 million investor exposure (rt.com)
- Russia’s Nomos Bank plans $700m London float (telegraph.co.uk)
- NLMK posts FY 2010 net profit of $1.25 billion (rt.com)