| Other Photos |
 |
|
 |
Vneshtorgbank Begins People's IPO
Vneshtorgbank, Russia's second largest bank will begin accepting applications to buy its stock next Monday. Applications will be accepted at any of the banks offices (in more than 100 Russian cities) until May 7. According to the issue prospectus, the bank will spend 4 billion rubles on the IPO, with an advertising budget of $29 million, comparable to that of the best-known international consumer products.
Vneshtorgbank president Andrey Kostin traveled to the presidential residence at Novo-Ogarevo to inform Russian President Vladimir Putin that the bank had begun a “people's IPO.”
Vneshtorgbank is now 99.9-percent in Russian government ownership. It was announced at the beginning of the year that up to 15 percent of shares in the bank will be made available to the public in an additional stock issue. The minimum purchase will be 30,000 rubles, with no maximum, although daunting paperwork will be in store for those who want to spend more than 10 million rubles on bank stock. Deutsche Bank, Citigroup, Goldman Sachs and Renaissance Capital will serve as advisors and organizers.
The volume of the new issue will be 17.343 billion rubles, placed as 1,734,333,866,664 stocks with a face value of 0.01 ruble each. Half the issue will be placed in Russia, and the other half abroad. The authorized capital of the bank now consists of 5.2 trillion shares. Thus, the authorized capital will be increased by 30 percent. Vneshtorgbank common stock will be traded on MICEX, RTS and the London Stock Exchange.
Experts comment that the advertising budget for the IPO is “unbelievably huge.” Marketing costs for an IPO, including transportation and organizational costs for a group of analysts on a road show, usually do not exceed $2-3 million. Kommersant has learned that Rosneft and Sberbank spent $5 million for those purposes.
www.kommersant.com
All the Article in Russian as of Apr. 05, 2007
|
|
|
