Russian Billionaire Nesis Says Nomos Bank May Hold IPO in 2011

02.12.2010 | Bloomberg

Russian billionaire Alexander Nesis, a shareholder in precious metals miner OAO Polymetal and potash producer OAO Uralkali, said his Nomos Bank may sell shares to the public next year to help meet domestic demand for financing.

An IPO makes sense to boost owners equity to stay in compliance with state requirements as the business grows, Nesis said in an interview in Moscow. We are studying such an opportunity, while no decision has been taken yet.

Nomos, Russias sixth-largest non-state lender, has borrowed $850 million from foreign banks this year as it increases lending to domestic households and businesses and acquires a regional lender. Nesis ICT Group owns about 52 percent of Nomos, while Czech billionaire Petr Kellner controls 28.5 percent and J&T Group has 19 percent.

Russian bank lending to individuals has increased for eight-straight months, while loans to companies have climbed for seven, according to central bank data. Demand for financing began to recover at the end of the first quarter, after the economy shrank 7.9 percent in 2009, the most on record.

Nomos will have to compete for investors if it goes ahead with an IPO in 2011. VTB Capital, the nations biggest equity underwriter, expects Russian companies including state and private banks to sell as much as $28 billion of shares publicly next year, the most since 2007, after the countrys benchmark index regained the bulk of its record decline.

Alfa, Promsvyaz

Nesis, 47, said Nomos will have about 450 billion rubles ($14.3 billion) of assets by the end of the year, after it completes the acquisition of Khanty-Mansiysk Bank, a lender in the eponymous Siberian oil province. That would make Nomos Russias largest non-state lender after Alfa Bank and OAO Promsvyazbank, according to Kommersant Dengi magazine rankings. Nomos expects assets to grow 27 percent next year to about $18 billion on increased lending, Nesis said.

If our return on equity is below this percent, it means well have to increase shareholder equity so it doesnt fall below the required threshold of at least 12 percent of the banks liabilities, Nesis said.

Nesis and his partners control about 24 percent of Polymetal, Russias largest silver producer, and 13 percent of Uralkali. Those stakes are worth about $3.3 billion combined, according to the companies market values at the close of trading on Dec. 1. Forbes magazine in May ranked Nesis the 44th richest Russian, with a fortune of $1.4 billion.

Source:  Bloomberg

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