TCS Bank IPO coordinators exercise greenshoe option - sources
MOSCOW. Nov 26 (Interfax) - The greenshoe option for the Global Depositary Receipts (GDR) of Russia's TCS Bank has been exercised, financial market sources told Interfax.
One of the sources said the option was exercised completely, while another said the amount of GDR sold is still being tallied.
Goldman Sachs International, one of the coordinators of TCS Bank's IPO and the stabilization manager for the deal, said on Friday that the period for the greenshoe option had ended.
The coordinators of the IPO could support the price of the GDR by buying shares at the placement price for 30 days after the offering under the option. Goldman Sachs said that the stabilization period lasted from October 31 to November 20.
TCS Bank carried out an IPO on the London Stock Exchange on October 22, selling its GDR for $17.50, at the upper end of the price range.
The sellers were bank founder Oleg Tinkov Goldman Sachs, Baring Vostok, Vostok Nafta, Horizon Capital and Altruco Trustees Limited, representing the bank's senior executives. The deal was organized by Goldman Sachs, Morgan Stanley, Sberbank CIB, J.P. Morgan and Renaissance Capital.
The IPO totaled $1.087 billion before the coordinators' greenshoe option, with 62,111,802 receipts placed. The bank raised $175 million, placing 10 million new shares, and the other $912 million went to shareholders. They could have earned another $163 million if banks exercised the greenshoe option (9,316,770 receipts), in which case the IPO would have raised $1.25 billion.
TCS Bank rallied immediately after the IPO but started to fall by the end of October. The GDR were trading below the IPO price on October 31 and the next day they dropped below $17, though they closed at $17.05.
On November 15, the bank's GDR tumbled on reports of a possible ban on banks issuing consumer credit cards outside of offices and branches. The bank's market capitalization plunged 26% and its GDR fell to all-time lows of $8-$9, but then corrected up to close at $11.50.
The author of the bill with the reported ban, Anatoly Aksakov later told Interfax that a mistake had made its way into the amendments to the consumer lending bill, distorting the meaning of the text - the conjunction 'or' was omitted in the phrasing.
The bank was trading at $12.80 on the LSE at 7:24 p.m. Moscow time on Monday.
TCS Bank was Russia's third 61st largest bank by assets, according to the Interfax-100 ranking at the end of the third quarter of 2013.