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London Bourse Admits Sberbank’s GDRs to Trading

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The London Stock Exchange has included Sberbank’s stock in its official list, following the sell-off of a 7.58 percent stake in Russia’s largest state-controlled lender, the LSE said on Monday.

The London Stock Exchange has included Sberbank’s stock in its official list, following the sell-off of a 7.58 percent stake in Russia’s largest state-controlled lender, the LSE said on Monday.

The London bourse admitted Sberbank’s Global Depositary Receipts (GDRs) and American Depositary Receipts (ADRs), each representing four ordinary shares.

Russia’s Central Bank closed a deal on September 19 to sell a 7.58 percent interest in Sberbank for 93 rubles ($3.04) per share and $12.16 per Global Depositary Receipt for $5.2 billion, while retaining a 50 percent plus one share stake in what is described as Europe’s third largest bank after HSBC and Santander.

The sale of a stake in Sberbank is part of the Russian government’s large-scale privatization plan to sell off state assets.

Ahead of the sale of the 7.6 percent stake, Sberbank launched in June 2011 its long-awaited American Depositary Receipts program and selected the Bank of New York Mellon as its depositary.

After official listing on the LSE, both Sberbank’s ADRs and GDRs are shedding about 1 percent of their value.

As of 11:33 a.m. Moscow time (07:33 GMT), Sberbank’s ADRs, which previously traded through the regulated market segment of the International Order Book (IOB), fell one 1 percent to $12.08 per security while the lender’s GDRs, which were sold in Sberbank’s second public offering (SPO), lost 1.1 percent to $12.02.

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