Promsvyazbank launches preliminary investor meetings ahead of IPO

KOMMERSANT. Today Promsvyazbank will start preliminary meetings with potential investors prior to an initial public offering (IPO), which was scheduled for several years. The shares will be sold by the lender’s beneficial owner, Promsvyaz Capital B. V. that is controlled by Ananiev brothers, and after the IPO the free float could equal a quarter of the bank’s shares. It was decided to stage the stock offering using an accelerated scheme: the bank needs capital urgently, and the favorable market conditions created by Sberbank’s SPO could last for a little while, Kommersant business daily wrote.

Since Monday Promsvyazbank plans to start investor meetings ahead of the IPO, the road show will be held from October 2 through October 11, while the stock offering itself will be staged by the end of the year, a source familiar with the details of the upcoming offering told Kommersant. During the IPO roughly 25% of the bank’s common shares could be floated, and the shares will be sold by the lender’s controlling shareholder (Promsvyaz Capital B. V. owned by the Ananiev brothers), the newspaper’s another source on the financial market added. According to the same source, plans are to raise at least $500 mln that will be injected into the bank’s capital, which is required for more aggressive expansion in the retail and SME segments. As one of the sources said, the stocks are scheduled for placement on Moscow Exchange and the LSE as GDRs. IPO arrangers will be JP Morgan, HSBC and Renaissance Capital.

Promsvyazbank voiced its resolve to go public prior to the crisis 2008.

However, only on August 3, 2012 the Central Bank of Russia registered a decision on the bank’s additional share issue, and in a month Promsvyazbank said it applied to the Federal Service for Financial Markets (FSFM) for authorization to place the securities abroad.

Experts attribute the fact that the bank sped up IPO preparations at this particular time to deepening problems with the bank’s capital and favorable market conditions which arose after Sberbank’s SPO. “The bank has faced problems with capital adequacy for a long time, and this year the bank’s shareholders incurred additional expenses to buy an equity stake held by German Commerzbank,” Olga Belenkaya, deputy head of research at Sovlink, noted. For the record, in June 2012 Promsvyaz Capital B. V. acquired a 14.37% stake held by German lender Commerzbank, which pulled out of Promsvyazbank. As of September 1, 2012 Promsvyazbank’s capital adequacy ratio (№ 1) equaled 10.72% against the minimal threshold of 10%, IFC Solid analyst Elena Yushkova pointed out.

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