IPO of VTB Bank raises USD 8 bln

Probably one of this year's largest IPO comes from Russia. The VTB Bank, Russia's second largest bank was able to raise $8 bln in its homeland and abroad. VTB Bank will be the first Russian stock traded on a Western stock exchange.

So far, Russia's stock market has been dominated by shares of energy and commodity firms, which also explains the rather weak growth of Moscow's RTS-index. Energy shares such as Gasprom, Lukoil and Surgutneftegas, which make one third of the index, have even been loosing around 15 - 20 percent of market value since January.

Still, investors are stil prepared to bet on the growth potential of the Russian econmy. Especially bank shares have moved into the focus of the invesment community. The Russian Sberbank, specialised in private banking, is the current market leader with a market share of around 50 percent. VTB Bank, a former external trade bank of the Soviet Union, has a current market share of around 5 percent. $1.6 bln of the IPO was subscribed by small investors of Russia.

Source: FAZ.Net


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