Petrocommerce Bank might hold IPO in next two or three years - Kommersant
MOSCOW. April 14 (Interfax) - Petrocommerce Bank might hold an initial public offering (IPO) in the next two to three years, the main shareholder in the bank, Leonid Fedun, said in an interview with the Russian daily Kommersant. Fedun owns 79.39% of the shares in the bank.
"We recently discussed a new strategy for developing Petrocommerce Bank and we believe that it has good potential for stable growth and expansion of its operations on the banking services market," he said.
Fedun added that the bank should analyze the market prior to the IPO, as well as prepare a new strategy. He said that a strategy currently being developing puts focus on both retail services and small and medium-sized businesses.
He said that the bank could provide services to major companies but this would be a small number.
Fedun said: "Petrocommerce bank has provided loans to Rosneft, Gazprom Neft and Gazprom , as well as their subsidiary companies. However, the major quality borrowers are divided up. They diversify their creditors and debtor banks. Therefore, that leaves small and medium business. It is necessary to place liquidity and boost the share of retail lending," Fedun said.
He said that Petrocommerce relies little on business from Lukoil since its balance sheet cannot meet the loan demands of such a large company. Lukoil accounts for less than 1% of the bank's loan portfolio.
At the same time, the share of accounts for clients affiliated with Lukoil account for around 40% of Petrocommerce Bank's obligations. These include individual accounts for Lukoil employees and paying clients. Lukoil accounts for around 20% of the bank's transactions.
He said that small and medium-sized businesses, unlike major clients, divide up their funding base through stable and diversified sources. In addition, this sector has an option for special agreements with the bank's shareholders for maintaining their financial
Fedun said that he is ready to sell his shares in the bank through the IPO.
"I will sell my packet to a certain extend through a public placement but it is too soon to say how much," he said.