Sovcombank majority shareholder reduces stake in bid to boost free float

MOSCOW. July 23 (Interfax) - IJSC Sovco Capital Partners, the majority shareholder of Sovcombank , and some key managers have reduced their stake in the bank, the bank said in a statement.

Existing shareholders, including institutional and retail investors, and new investors, including bank clients, bought Sovcombank shares during accelerated bookbuilding.

The total share of Sovco Capital Partners, the bank's management and affiliates, as well as strategic investors and other shareholders owning 5% or more of the bank's shares, decreased to less than 90% of the bank's capital as a result.

Reports have said Sovco Capital Partners was planning to sell a portion of the bank's shares on the market to increase the share of free float from 5% to 10%. This is necessary for Sovcombank to remain on the MOEX first quotation list, Sovcombank Managing Director Andrei Osnos told reporters in May.

Sovco Capital Partners owns 85% of shares, a number of sovereign funds 10% and the free float is 5%, Osnos has said.

Sovcombank, its controlling shareholders and their affiliates committed to a lock-up following the bank's IPO, until July 1, 2024. The total size of the IPO in December 2023 was 11.5 billion rubles including the stabilization package, or 10 billion rubles without it.

Rosbank was Russia's 8th biggest bank by assets, valued at 3.406 trillion rubles, in Q1 2024 according to the Interfax-100 ranking of the country's major banks.