Stocks of VTB Bank are being actively traded
In a significant development for the Russian financial market, VTB, one of the country's largest banks, successfully completed a large-scale share offering on September 19. The offering, which saw a total of 1.17 billion shares issued, was the largest on the Russian market in the past two years.
The offering was met with overwhelming demand, with total orders exceeding 180 billion rubles. The majority of the placement went to large investors, including pension funds and asset management companies. The maximum order, nearly 10 billion rubles, was likely from an 'anchor' investor, the Russian Direct Investment Fund (RDIF) being the largest among them.
The trading volume on September 19 exceeded 28.6 billion rubles, a record since early May, reflecting the high interest in the offering. VTB announced a supplementary share issue at 67 rubles per share, totaling 78.3 billion rubles. The share price of VTB (MOEX: VTBR) closed at 70.43 rubles on September 19, a 5% increase from the placement price but 1.9% lower than the previous close.
Igor Dodenov, an analyst at FG 'Finam', stated that the SPO largely met expectations. Oleg Abelev, head of the analytical department of IC 'Ricom-Trust', estimates that by the end of the year, with a key rate of 15%, the bank's share price may return to 80-82 rubles. Experts believe that the completion of the SPO will ease pressure on VTB shares.
The proportion of ordinary shares in free float will exceed 49%, while the controlling stake in the shares will remain with the state. The ten largest orders accounted for over 61% of the placed volume (around 48 billion rubles). A total of 17 orders ranging from 0.25 to 1 billion rubles and 8 orders of over 1 billion rubles were satisfied.
Andrei Petrov, director of private banking at BCS Mir Investments, believes that VTB's example may serve as a positive signal for companies looking to enter the market or place an additional issue. Retail investors also actively participated in the VTB offering.
The offering took place at a 9.5% discount, and 7,670 satisfied orders were for less than 10,000 rubles, indicating a strong participation from individual investors. With this successful offering, VTB has set a positive precedent for the Russian financial market, demonstrating the potential for large-scale share issues.
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