Nomos prices share offer to raise £443m

RUSSIAN private bank Nomos has priced its London share offer at the higher end of expectations, as the faltering market for listings in the capital begins to show signs of life.

Nomos will look to sell ordinary shares in Moscow for $35 (£21) apiece, while it will sell global depository receipts (GDRs) for $17.50 per unit in London, valuing the business at $3.2bn.

The combined proceeds from the initial public offering (IPO) for the bank will be $718m (£443m) before the exercise of an over-allotment option.

The bank, which is Russia’s eighth biggest by total assets, had initially looked for between $32 and $37 per ordinary share and $16 to $18.50 per GDR.

Demand for the offer quickly filled the order books of bankers at Deutsche, Credit Suisse, Citi and VTB Capital, leading to a tightening of the price range late last week.

Slovakian businessman Roman Korbacka will sell down almost all of his stake in the bank, and could exit Nomos completely if he exercises his over-allotment option.

Meanwhile, billionaire oligarch Alexander Mamut, who is best known in Britain as the backer of blogging site Livejournal, will become a cornerstone investor in the firm when its shares start trading early next week.

The deal could help to kick-start London’s IPO market, following a torrid few weeks for stock market listings in the capital.

Several floats, including those of fellow Russian firm Euroset and British vacuum technology group Edwards, have been put on hold due to uncertain market conditions.

Observers are also hoping a successful listing by commodities colossus Glencore could bolster investor appetite for IPOs. The Swiss firm unveiled its $11bn blockbuster offering last week, and is set to complete next month.