Russia’s VTB Bank sets SPO price, could raise up to $2.4 bln

Russian state-owned lender VTB (VTBR.MM) on Friday set the price for its secondary public offering (SPO) at 0.018225 roubles per share, implying a maximum capital raising of 196.5 billion roubles ($2.43 billion).

A total of 9.3 trillion shares with a par value of 0.01 roubles each will be placed by public subscription, VTB said.

The bank expects to bounce back to profit this year after a huge net loss in 2022 as Western sanctions hit Russia’s financial sector.

CEO Andrei Kostin has presented the SPO, as well as other additional share issues this year, as a means to help the bank resolve capital problems.

“Plans for the additional issue do not come as a surprise to the market,” said BCS Express analysts. “However, the announced price of the issue is 15 per cent lower than market (price). VTB shares could come under pressure this morning.”

VTB’s Moscow-listed shares closed at 0.021770 roubles on Thursday.

($1 = 80.7100 roubles)