Stocks of VTB Bank are under negotiated transactions
VTB's Secondary Public Offering Breaks Records and Attracts High Demand
In a significant move for the Russian market, VTB, one of the country's largest banks, has successfully completed a Secondary Public Offering (SPO) worth around 50 billion rubles. This offering, the largest in the past two years, surpassed demand of 180 billion rubles, marking a strong investor interest in VTB shares.
The ten largest orders accounted for more than 61% of the placed volume, with the majority of the placement (59%) going to large investors, including pension funds and asset management companies. The largest number of VTB shares during the SPO were acquired by institutional investors at a placement price of 67 rubles per share, corresponding to nearly 24% of all ordinary shares. However, specific institution names are not disclosed in the search results.
The offering took place at a 9.5% discount, which may have attracted a large number of investors, as evidenced by the oversubscription reported by Egor Dakhltler, chief analyst at "T-Investments." The share price of VTB fluctuated throughout the trading day, dropping to 69.3 rubles and surging to 72 rubles, possibly due to these price fluctuations.
By the end of the main trading session, turnover exceeded 28.6 billion rubles, a record since early May. VTB's share price closed at 70.43 rubles on September 19, a 5% increase from the placement price but 1.9% lower than the previous close. Some investors closed short positions on VTB's shares in the final trading sessions.
In addition, 94.8 million shares were applied for under preemptive rights, totaling 6.3 billion rubles. Open subscription saw 1.17 billion shares issued, totaling 78.3 billion rubles, with over 16,800 deals concluded. The offering also satisfied 17 orders worth between 0.25-1 billion rubles and 8 orders worth more than 1 billion rubles. The maximum order was almost 10 billion rubles, likely from an anchor investor.
Experts predict that the bank's share price could return to 80-82 rubles by the end of the year. VTB's example may serve as a positive signal for companies looking to enter the market or place an additional issue. The completion of the SPO is estimated to ease pressure on VTB shares, providing a positive outlook for the bank's future. Furthermore, each additional issue will be considered individually, with attention focused on the size of the discount and demand from existing and retail investors.
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