Sovcombank announced an IPO on the Moscow Exchange – Kommersant

Sovcombank announced that it intends to conduct an initial public offering of ordinary shares (IPO) with a listing on the Moscow Exchange. The trading platform previously stated that trading in shares of the financial institution could begin on December 15. The IPO will be held under the cash-in scheme and does not involve significant dilution of shares.

“As a result of the IPO, liquidity will be created and the market value of the bank’s shares will be determined, which, in particular, will increase flexibility within possible mergers and acquisitions. An application to purchase shares can be submitted from December 1 to December 14, 2023 through leading Russian brokers, including Sovcombank. A wide range of investors, including individuals and institutional investors, will be able to take part in the IPO,” the statement says. message credit institution.

As part of the IPO, the Bank plans to raise 10 billion rubles, as well as assumed “Ъ”. The indicative price range for placement is set at 10.5 to 11.5 rubles. per share. This “corresponds to Sovcombank’s market capitalization of RUB 200 billion. up to 219 billion rubles. and a multiple of 2.2x – 2.4x P/E 2023, excluding the expected raising of funds for the IPO.”

On the eve of the Moscow Exchange reported, which will include Sovcombank shares in the list of securities admitted to trading on December 15. The bank’s securities will be included in the first quotation list and will be traded with the ticker SVCB.

Back in October, Sovcombank shareholders approved the decision to place shares and apply for listing on the Moscow Exchange. We are talking about the issue of 5 billion ordinary shares with a par value of 0.1 rubles. On November 20, the Central Bank registered an additional issue and prospectus of the bank’s ordinary shares placed by public subscription.

The placement of Sovcombank shares will be not only the first classic IPO of a legal entity under strict US sanctions, but also the first banking IPO in Russia in many years. In 2020–2021, the option of an IPO of Otkritie FC was considered, but in the end the bank was sold to VTB. Also in 2021, it was reported about a possible IPO of MTS Bank, but at the beginning of 2023, the head of MTS, Vyacheslav Nikolaev, said that the market is not suitable for this now, and in October, the founder of AFK Sistema, Vladimir Yevtushenkov, doubted that it would be held in 2024. The last Russian bank to hold an IPO was Moscow Credit Bank in 2015.

Read more about preparations for the IPO in the Kommersant article. “Sovcombank doesn’t ask for much”.

Alexander Kislov