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. Last Updated: 07/27/2016

KIT Plans $1Bln Float in 2008

Investment bank KIT Finance said Thursday that it planned to raise around $1 billion in an initial public offering to be held not earlier than October 2008.

"We plan to float in Russia and a [Global Depositary Receipt] issue on the London Stock Exchange," bank head Alexander Vinokurov told journalists. "The bank plans to raise around 25 billion rubles ($985 million)."

The sale will take place after State Duma elections in December, and KIT Finance hopes to hire banks to organize the offering in the next weeks, Vinokurov said, RIA-Novosti reported.

Vinokurov said the bank's owners were prepared for a scenario whereby investors could get more than 50 percent of KIT Finance shares.

"Most probably, we will float more than a blocking stake. The main thing here is to raise an amount sufficient for the bank's further development," Vinokurov said.

Under Russian law, a blocking stake is a share of 25 percent plus one share.

KIT Finance will float its new share issue, a market source said. "To ensure a proper level of liquidity, the volume of the GDR program should be at least $200 million to $300 million," the source familiar with the bank's IPO plans said.

The bank is currently holding consultations with banks and investment companies to select one to arrange the IPO.

Reuters, Bloomberg