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. Last Updated: 07/27/2016

Bank St. Petersburg Brings in $270M

Bank St. Petersburg said Friday that it had raised $274 million in a heavily oversubscribed share offering, the largest by a private Russian bank to date, pricing its shares at the upper end of its range.

The bank priced the offering of around 51 million newly issued shares, equal to 18 percent of its enlarged capital, at $5.4 per share and $16.20 per Global Depositary Receipt. The offering values BSPB, the third-largest bank after state-controlled Sberbank and VTB in and around St. Petersburg, at $1.52 billion.

"The deal met strong investor demand and was multiple times oversubscribed," the bank said in a statement.

Deutsche Bank and Renaissance Capital organized the placement on Russian bourses and among institutional investors outside the United States. The bank, founded in 1990, has a market share of around 10 percent in terms of loans and deposits in St. Petersburg and the Leningrad region.

"The successful placement is a positive signal for the market. We hope international investors will again turn their attention to the Russian financial sector," said Alfa Bank analyst Olga Naidenova.