Bloomberg News

Promsvyazbank Billionaires Said to Hire JPMorgan, HSBC for IPO

March 29, 2012

OAO Promsvyazbank, the Russian bank buying back its shares from Commerzbank AG, hired JPMorgan Chase & Co. and HSBC Holdings Plc to prepare its initial public offering, two people familiar with the matter said. Photographer: Robert Caplin/Bloomberg

OAO Promsvyazbank, the Russian bank buying back its shares from Commerzbank AG, hired JPMorgan Chase & Co. and HSBC Holdings Plc to prepare its initial public offering, two people familiar with the matter said. Photographer: Robert Caplin/Bloomberg

OAO Promsvyazbank (PRSB), the Russian bank buying back its shares from Commerzbank AG (CBK), hired JPMorgan Chase & Co. (JPM:US) and HSBC Holdings Plc (HSBA) to prepare its initial public offering, two people familiar with the matter said.

The lender, controlled by billionaire brothers Alexey and Dmitry Ananiev, will later pick a Russian investment bank to help with the sale, the people said, declining to be identified because the information is private.

Promsvyazbank will probably seek to raise about $1 billion in the IPO, which may take place this year, said Artem Konstandian, the bank’s president, in an interview in the Russian capital last week. Promsvyazbank first may sell an equity stake to a partner, which might delay its listing in London and Moscow, Konstandian said March 21.

The Ananievs, who control 73.9 percent of Promsvyazbank, are paying about 150 million euros ($199 million) to buy back the 14.4 percent that Commerzbank, Germany’s second-largest lender, acquired in 2006. The European Bank for Reconstruction and Development, set up by western governments to help former Communist countries make the transition to capitalism, owns 11.8 percent.

The IPO would be the first for a non-state bank in Russia since Nomos Bank raised more than $700 million last April. Promsvyazbank canceled plans in 2008 to raise as much as $1 billion selling a 25 percent stake after markets plunged following the collapse of Lehman Brothers Holdings Inc. and Russia’s five-day war with Georgia.

The lender in January hired Neil Withers, a former vice chairman at merchant bank Silk Route Financial and a vice president at VTB Group, to help with the IPO as head of investor relations. Net income more than doubled last year to 5.2 billion rubles from 2.5 billion rubles in 2010, the bank said March 19.

Natalia Shchetinina, a JPMorgan spokeswoman in Moscow, declined to comment, as did HSBC’s press service in London. An official in Promsvyazbank’s press service said the bank hasn’t officially decided who to hire for the IPO.

To contact the reporters on this story: Jason Corcoran in Moscow at jcorcoran13@bloomberg.net; Torrey Clark at tclark8@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Will Kennedy at wkennedy3@bloomberg.net


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