The Russian Economic Development and Trade Ministry has drafted the resolution setting the price, which is subject to approval by the bank's supervisory board, the source said.
This means that, provided all the 1.73 trillion of shares planned for flotation, are bought, VTB could raise 235.87 billion rubles ($9.2 billion) in a global offering comprising an offer of shares to international institutional investors, an offer of Global Depositary Receipts (GDRs) in London, and an offer of retail stakes at home.
VTB accepted about 119,000 individual applications with the minimum bid price of 30,000 rubles (about $1,200), worth 37.7 billion rubles ($1.5 billion), thus promising to raise more from ordinary Russians than the first IPO'd government-owned Sberbank.
In London, where Russian stock market regulators approved the offering of GDRs worth about 70% of the additional issue, the GDR indicative price range was set between $8.77 and $10.79, which sets the bank's implied market capitalization between $22.845 billion and $28.102 billion.
After the additional issue of over 1.73 trillion 1-kopek shares (25% of the capital), the bank's chartered capital will grow from 52.1 billion rubles ($2 billion) to 69.44 billion rubles ($2.7 billion).
VTB is currently 99.9% owned by the government of Russia, whose shareholding will drop to 75% plus one share after the global offering.
