VTB Group led gains among Russian stocks after the nation’s second-largest lender said investors agreed to buy all $3.3 billion of shares it’s selling to increase capital.
VTB surged as much as 4.7 percent, adding 2.8 percent to 4.66 kopeks by 2:28 p.m. in Moscow. More than 64 billion securities changed hands, equivalent to about 1.5 times the three-month average. Global depositary receipts jumped 4.2 percent to $2.957 in London. The benchmark Micex Index retreated 0.3 percent, after climbing as much as 0.6 percent.
The bank has orders from new and existing shareholders, including Norges Bank Investment Management, the world’s largest sovereign fund, Qatar Holding LLC and Azerbaijan’s State Oil Fund, Moscow-based VTB said today in a statement. The three sovereign funds took more than 50 percent of the offering, Chief Financial Officer Herbert Moos said on a conference call.
“VTB is rising on the confirmation that long-term investors are buying shares and there won’t be an overhang,” Andrey Tretelnikov, an analyst at Rye, Man & Gor Securities, said by phone from Moscow. “Now VTB won’t have problems with capital.”
VTB plans to sell the stock on the Moscow Exchange to boost regulatory capital depleted by acquisitions including OAO Bank of Moscow, OAO TransCreditBank and a buyback of minority investors. The share sale will lift its Tier 1 Capital ratio to 11.9 percent from 10.3 percent at the end of March, VTB said.
The state-run bank is selling 2.5 trillion new shares at 4.1 kopeks apiece, VTB said on April 26. The government stake of 75.5 percent in VTB is expected to fall to 60.93 percent following the placement, VTB said today. Buyers of the new shares won’t be eligible to receive 2012 dividends, according to the statement.