VTB IPO Preparations Underway
Russia's second largest financial institution, VTB, is now undertaking plans to meet potential investors from all over the world in preparation for the issuance of new shares.
The IPO is set to a value of 100 billion roubles or US$3.16 billion with the proceeds to be used for the growth of the company according to its chief financial officer.
CFO Herbert Moos said that the bank cannot determine the timing of the availability of the shares in the market, but said that the same would be available in the Moscow index through open subscription.
The capital buffer is needed by VTB in compliance with its regulatory requirements as well as give it more financial flexibility to provide more loans to consumers and businesses in the Russian market.
Earlier reports provided that the bank's Tier 1 capital adequacy ratio was at 10.3% in 2012 against to just 9.0% in 2011. The VTB CFO reassured its shareholders that the level would be maintained regardless of the outcome of the IPO.