Promsvyazbank could hold IPO in three years - bank chief
MOSCOW. May 24 (Interfax) - Promsvyazbank might hold an initial public share offering within three years, the bank's president, Artem Konstandyan, told reporters.
"I'm fairly certain Promsvyazbank will go public over a three-year horizon," he said.
Konstandyan said the bank did not currently need to raise funds: its N1 capital adequacy was 12% as of May 1, 2013 as the result of deals like a subordinated bond placement that were done instead of an IPO.
"Our capitalization is now higher than we planned as the result of an IPO," he said. "There is no need to increase capital, which is one of the aims of an IPO. We'll wait for good times, but we can't yet see when they will be upon us," he said.
The bank originally planned an IPO in the autumn of 2012. The price range was $10-$12 per GDR ($13.33-16 for 10,000 ordinary shares). The bank planned to sell 20% existing shares on the London Stock exchange and in Russia. Based on the price range, the IPO might have raised between $345 million and $414 million. However the bank decided to pull the IPO after it did not get the price that it or its shareholders considered to be fair.
Promsvyazbank was the 10th biggest bank by assets in Russia for the first quarter of 2013, according to the Interfax-100 ranking, compiled by the Interfax Center for Economic Analysis. It was 10th by retail deposits and 22nd by retail loans.