Bank Saint Petersburg Celebrates 10th Anniversary of IPO
Exactly 10 years ago, in November 2007, Bank Saint Petersburg became the first Russian privately owned bank to carry out an initial public offering (IPO). The innovative deal involved a mixed offering of shares and depositary receipts convertible into shares, which was unprecedented in the Russian market.
The management went on an extensive roadshow, ultimately building an order book of USD 2 bn. The book was oversubscribed on the very first day of the roadshow. After the pricing, with 7 times oversubscription, the Bank raised USD 270 mln from 130 investors.
Over the 10 years of its public history the Bank significantly expanded its business capacities: the number of employees, offices and ATMs has doubled, while the revenues have increased 5 times and each of total assets, loan portfolio and customer deposits have shown a 6-fold growth. The number of individual customers has reached 1.9 mln, the number of corporate customers doubled, currently comprising 51,000 companies. The Bank entered the top 20 of the Russian banks and has been holding a steady ranking among them for the entire decade.
No matter what was happening in the past 10 years, the Bank always remained profitable, constantly increasing the shareholders equity and book value per share, which went from RUB 40 in 2007 to the current level of RUB 140.
Unchanged after the 10 years is the Bank’s financial stability, customer deposits as the main source of funding, cost efficiency (the cost-to-income ratio is maintained at 40%), and the company’s management still holding the controlling interest in the Bank and staying highly involved in its everyday business.
Mr. Alexander Savelyev, Chairman of the Bank’s Management Board, commented:
“The IPO was one of the most important events for the Bank which had a significant effect on all its subsequent history. We have made a major change for the better, adopting the highest standards of corporate governance and risk management. Unlike most Russian banks, due to the IPO we have the opportunity to raise capital in the market, which we proved once again this year.
The Bank consistently keeps its promises it made to the market 10 years ago and stays as open as possible to both current and potential investors. We are glad to observe the persistent and continuous interest in the Bank’s shares”.