BILLIONAIRE oligarch Alexander Mamut is set to become a cornerstone investor in Russian private bank Nomos in its upcoming London share offering, despite failing to raise funds in an aborted stock market sale last week.
The Moscow-based businessman, best known in Britain as the owner of blogging site Livejournal, has placed an order for tens of millions of dollars of stock in the bank, which is due to set a price for its initial public offering (IPO) today.
He had planned to raise $1.35bn (£827m) through the sale of a 35 per cent stake in Russian mobile network operator Euroset, before the company pulled the plug on its IPO plans at the eleventh hour.
The firm blamed “challenging and volatile” market conditions, becoming the latest casualty of London’s faltering market for new company offers.
The success of Nomos’ listing could breathe new life into the market, as it looks to raise up to $700m.
The bank tightened the price range for its global depository receipts (GDR) to the higher end of expectations at the end of last week, indicating strong investor appetite.
It will now look to raise between $17.25 and $17.75 per GDR, from between $16 and $18.5 per GDR.
MEET THE ADVISERS
NEIL Kell is leading the advisory for Deutsche Bank as joint global coordinators on the Nomos initial public offering (IPO).
Based in London, Kell moved to Deutsche from Bank of America Merrill Lynch last year to become head of the financial institutions group in equity capital markets (ECM).
He was joined by Marina Kraschenko in Moscow on the Nomos deal.
Kraschenko also joined the Frankfurt-based bank last year, moving from United Capital Partners to become head of ECM in Moscow.
The bank is also leading the Commerzbank capital increase, as the fellow German bank looks to raise up to €650m (£575m) to increase its financial strength.
Deutsche is raising equity for Italian banks Intesa San Paolo, Banca Monte dei Paschi and German lender Aareal Bank.
Credit Suisse is also acting as joint global coordinator on the Nomos offering.
Citigroup, Credit Suisse, Deutsche Bank and VTB Capital are acting as joint bookrunners.