VTB shares hit record low, over 40% below Wildberries-linked offering price
VTB sought access to Wildberries’ 80 million customers. After drone strikes hit the retailer’s warehouses, Moscow considered making the bank central to a support plan.
VTB's shares plummeted to a record low of just under 50 rubles ($0.60) on August 26, significantly below the 87-ruble ($1) price for a share sale linked to its Wildberries partnership. This price meant investors paying for the offering would pay over 40% more than those buying shares on the stock market. The bank's second-quarter results showed a 28% increase in provisions for troubled loans, with its profit falling by a third.
Analysts linked VTB's decline to its large new share issue, which could reduce existing stakes by one-third. Under the offering plan, VTB could issue nearly one new share for every two currently held. If sold in full, existing shareholders who bought no new shares would see their ownership fall by about one-third. VTB aimed to complete the sale and finalize the Wildberries deal by September 1, raising 300-400 billion rubles ($3.6-4.7 billion).
The bank hoped to acquire a 5% stake in Wildberries' banking arm, with an option to increase it later, viewing the partnership as a gateway to Wildberries' 80 million users. Despite the stock's drop, VTB maintained its price after it fell below the offering price, citing willingness from large, long-term investors to overlook short-term price swings.
Written by urgent.news from Euromaidan Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
