Sovcombank intends to conduct an initial public offering of ordinary shares with a listing on the Moscow Stock Exchange

AK&M 01 December 2023 13:19

Sovcombank PJSC intends to conduct an initial public offering of ordinary shares with a listing on the Moscow Stock Exchange. As part of the IPO, the bank plans to raise 10 billion rubles. This is stated in the bank's message.

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 in possible mergers and acquisitions.

It is possible to apply for the purchase of shares 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 participate in the IPO.

The indicative IPO price range is set at the level of 10.50 to 11.50 rubles per share, which corresponds to the market capitalization of Sovcombank in the amount of 200 billion rubles to 219 billion rubles and a multiplier of 2.2x - 2.4x R/E in 2023, excluding the expected raising of funds for the IPO.

The offer will consist exclusively of additional issue shares (cash-in). All funds raised during the IPO will be used for further business development.

None of the current shareholders of the bank will sell their shares as part of the IPO. At the same time, a number of existing shareholders of the bank, including institutional investors, employees and long-term clients of the Bank, expressed their intention to purchase shares of Sovcombank as part of the IPO.

The IPO price will be set by the decision of the bank's supervisory board following the end of the application collection period, which will begin today, December 1, 2023, and end on December 14, 2023.

By the time the deal was announced, Sovcombank had already received indicative offers to participate in the IPO from a number of major Russian institutional investors in the amount of 50% of the expected size of the offer.

The current shareholders and their affiliates will assume obligations related to the restriction on the alienation of the bank's shares within 180 days after the completion of the IPO.

As part of the IPO, a mechanism for maintaining the share price will be structured, which will be in effect for 30 days after the start of trading (a price stabilization mechanism).

It is expected that the start of trading in the bank's shares will begin on December 15, 2023 under the ticker SVCB and ISIN RU000A0ZZAC4. The shares were included in the first level of the listing of the Moscow Stock Exchange.  One lot will contain 100 shares.

The offer is available to Russian qualified and unqualified individual investors, as well as Russian institutional investors. It will be possible to apply for the purchase of shares through leading Russian brokers. The technical details of the application procedure will be published today on the official website of the Moscow Stock Exchange.

The issue documents and additional information are disclosed on the official website of the group and in the regulatory news feed.

Sovcombank PJSC (Kostroma, TIN 4401116480) – universal bank. It is included in the list of systemically important credit institutions (NWCS) of the Bank of Russia. Sovcombank's net profit under IFRS for 9 months of 2023 amounted to 76 billion rubles. The share capital has increased by 40% since the beginning of the year to RUB 232 billion.