MOSCOW, Oct 23 (Reuters) - Credit Bank of Moscow, one of Russia’s largest banks, plans to raise up to $258 million from its upcoming secondary public offering, according to Societe Generale, which is a joint global coordinator on the deal.
The privately-owned CBM, ranked Russia’s ninth-biggest lender by assets according to Interfax, said earlier this month that the price of the offering was expected to be announced around Oct. 25. The bank plans to offer a total of 3.2 billion shares.
The bank is controlled by Rossium, the investment vehicle of businessman Roman Avdeyev.
Based on the share’s market price on Monday, CBM could raise $254 million from the offering. On Monday, the shares were trading at 4.555 roubles ($0.0793) each, according to ThomsonReuters data. SocGen said that CBM plans to use the proceeds for regular business needs.
Russia’s banking sector is under scrutiny after two major private lenders, Otkritie Bank and B&N Bank, had to be rescued by the central bank in the space of a month.
Rossium, which owns 56.83 percent of the bank, plans to participate in the offering, so it would retain control of the lender after the deal, CBM said earlier this month. ($1 = 57.4500 roubles) (Reporting by Elena Orekhova; writing by Katya Golubkova; Editing by Christian Lowe)