Cleary and White & Case lead on $500m Russian bank IPO

White & Case and Cleary Gottlieb Steen & Hamilton are advising on Russian bank Promsvyazbank’s plans to seek a $500m (£309m) dual London-Moscow initial public offering (IPO).

Cleary is fielding a team led by London capital markets and finance partner Simon Ovenden, advising Promsvyazbank on its bid to offer around 25% of its stock to investors. Cleary London capital markets partner David Gottlieb and Moscow partner Murat Akuyev are also advising. The trio also worked together on Sberbank’s $5.2bn London-Moscow offering listing last month.

The float, comprising Moscow-traded shares and London-traded global depositary receipts, is set to value the company at up to $2bn (£1.23m).

White & Case advised HSBC Holdings, JP Morgan Chase and Renaissance Capital as joint global co-ordinators and book-runners. 

Promsvyazbank’s listing would make it one of only a handful of Russian banks traded in London, including state-owned VTB and private lender Nomos, which is expected to be delisted soon following a merger with fellow lender Otkritie Capital.

The bank is Russia’s third-largest private lender, with RUB611bn (£12.1bn) in assets, having recently targeted retail customers and SMEs beyond its traditional base of corporate lending. It is owned by brothers Dmitry and Alexei Ananyev, who are thought to have a collective wealth of $3.6bn (£2.2bn).

Cleary has advised on several high-profile IPOs in recent months, including the planned £2.5bn London flotation of Megafon and Malaysian palm oil group Felda Global’s $3.2bn (£1.9bn) Malaysian listing in July.