VTB Bank, a prominent Russian state-owned lender, has announced the pricing for its secondary public offering (SPO) at 0.018225 roubles per share. With this pricing, the bank aims to raise a maximum capital of 196.5 billion roubles, equivalent to approximately $2.43 billion.
The SPO will involve the placement of 9.3 trillion shares with a par value of 0.01 roubles each, which will be made available through public subscription, according to VTB Bank.
Following the impact of Western sanctions on Russia’s financial sector, VTB Bank anticipates a significant rebound in profitability this year, after recording substantial net losses in 2022.
VTB Bank’s CEO, Andrei Kostin, has presented the SPO, along with other additional share issues planned for this year, as strategic measures to address the bank’s capital requirements.
Analysts at BCS Express have noted that the announcement of the additional share issue was expected by the market. However, the pricing of the offering, which is 15% lower than the prevailing market price, could potentially exert downward pressure on VTB Bank’s shares.
As of the market close on Thursday, VTB’s Moscow-listed shares were valued at 0.021770 roubles.
(Note: The exchange rate used in this article is $1 = 80.7100 roubles)