RUSSIAN giant Sberbank listed in the London Stock Exchange yesterday, joining the flood of firms from the country coming to the City.
The Russian central bank sold a 7.6 per cent stake in the institution, raising $5.2bn (£3.2bn) on the Moscow and London markets – though 85 to 90 per cent of that was on the LSE.
“Sberbank is a renowned financial institution, and a great win for London. This demonstrates that the City’s ability to deliver substantial equity funding to ambitious businesses around the world is as strong as ever,” said LSE’s Alastair Walmsley.
“It also underlines the fact that London remains, and has been for many years, the natural destination for Russian companies seeking access to investor capital from overseas.”
Other Russian firms looking to list in London include MD Medical Group, telecoms firm MegaFon and the country’s second largest lender VTB.
The pool of international investors in London is one reason why so many firms are interested in listing here, while the higher standards of corporate governance enforced by City authorities gives a degree of reassurance to investors worried about putting money into emerging market businesses.
The global depository shares now trading in London are worth four ordinary shares.
Those shares ended yesterday at $12.10, down 0.1 per cent on the day.