Sberbank share issue back on, roadshow to start in two weeks

By bne IntelliNews September 5, 2012

bne -

Russian state-owned banking giant Sberbank will offer investors a 7.6% stake in a much delayed secondary public offering (SPO) in the next two weeks, industry sources tell bne.

The sale of the stake has been a key asset in Russia's privatisation programme, launched by the then president, now prime minister, Dmitry Medvedev in the summer of 2010. However, poor market conditions have caused the mooted sale to be repeatedly delayed.

According to bne sources, the government is keen to get the show on the road - literally. "All the paperwork is being prepared and is almost ready. The Sberbank team will start the roadshow very soon - probably in the next two weeks," says a bne source who is close to the bank.

Sberbank's management hope to sell the stake valued at about $5bn to international investors, as Russia appears to be enjoying an upswing in sentiment amongst portfolio investors following several weeks of fund inflows. This week, even legendary fund manager Jim Rogers, who is famously down on Russia, said that he was becoming curious and might invest.

The sale of the stake is important, as it will be taken to mean the Kremlin has re-started its privatisation drive that stalled due to poor market conditions and political uncertainly in 2011.

Russian officials have started talking up the market. Economic Development Minister Andrei Belousov was quoted by Prime as saying on August 4: "The current market conditions are favourable for the sale of the Central Bank of Russia's (CBR) 7.6% stake in the country's biggest lender Sberbank."

Belousov pointed out the bank's shares are currently trading RUB93.97, higher than their IPO price of RUB89 per share.

Sberbank CEO German Gref has also said that September is a good time for privatisation of the stake.

Related Articles

Drum rolls in the great disappearing act of Russia's banks

Jason Corcoran in Moscow - Russian banks are disappearing at the fastest rate ever as the country's deepening recession makes it easier for the central bank to expose money laundering, dodgy lending ... more

Kremlin: No evidence in Olympic doping allegations against Russia

bne IntelliNews - The Kremlin supported by national sports authorities has brushed aside "groundless" allegations of a mass doping scam involving Russian athletes after the World Anti-Doping Agency ... more

PROFILE: Day of reckoning comes for eccentric owner of Russian bank Uralsib

Jason Corcoran in Moscow - Revelations and mysticism may have been the stock-in-trade of Nikolai Tsvetkov’s management style, but ultimately they didn’t help him to hold on to his ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss