Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

VTB Shares Rise on First Day's Trade

Shares of VTB Group, the bank that raised $8 billion in this year's biggest initial public offering, climbed 4.1 percent above the offer price on their first day of local trading.

The stock closed at 14.16 kopeks, (half a cent), on the MICEX index, two traders said. VTB sold 1.51 trillion shares at 13.6 kopeks apiece in the IPO. On the dollar-denominated RTS, VTB traded at 54 cents. About 488 million shares were traded on the RTS.

"People are happily putting money into dependable Russian companies," Economic Development and Trade Minister German Gref said Monday.

Some investors took advantage of the first day of trading to sell the shares they bought in the IPO, said Alexander Zakharov, deputy head of equities at Moscow-based Metropol.

"We have seen some profit-taking. If a stock that is as much undervalued as VTB goes down, it is a worrying sign," Zakharov said.

VTB's Global Depositary Receipts, each representing 2,000 ordinary shares, began unrestricted trading on the London Stock Exchange on May 17. Those shares fell 0.5 percent to close at $11.15 in London on May 25. The London exchange was closed Monday for a national holiday.

Also Monday, Vedomosti reported that relatives of senior government officials, including Finance Minister Alexei Kudrin and Central Bank Deputy Chairman Alexei Ulyukayev, bought shares in the VTB public offering.

Executives of state-run VTB, including CEO Andrei Kostin, bought a total of about $6 million of shares, the newspaper said, citing a Central Bank report.