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. Last Updated: 07/27/2016

Bank St. Petersburg Set to Float

Bank St. Petersburg, or BSPB, one of the country's leading regional banks, announced plans Tuesday for an initial public offering to boost its capital base and increase its assets.

The bank's float will include new share issues and unlisted Global Depositary Receipts comprising 18 percent of the company's ordinary shares. The listing is expected to take place before the end of the year.

The IPO will enable the bank "to further strengthen [its] capital base and support [its] ongoing expansion, building on the solid foundation established over the last 17 years," chief executive Alexander Savelyev said.

The bank intends to capitalize on its unique position as a regional leader, said Indrek Neivelt, chairman of the bank's supervisory board.

"BSPB is the fastest-growing bank in the St. Petersburg region, outperforming rivals through aggressive retail banking," said Olga Naidenova, a banking analyst for Alfa Bank.

But the timing of the IPO, which coincides with a global liquidity crunch, makes the move seem inappropriate, Naidenova said.

Savelyev, the bank's largest stakeholder, owns a 38.9 percent stake. Sergei Matviyenko, son of St. Petersburg Governor Valentina Matviyenko, holds a 5.5 percent stake.

At the end of June, Bank St. Petersburg, which has 28 branches and outlets, had assets of $3.3 billion and shareholders' equity of $290 million.