‘Sberbank of Russia’s IPO was definitely far from being ‘people’s’ one. However, even though many experts felt quite pessimistic about it, it’s quite certain that Sberbank has already collected 260 billion RUR,’ Vsevolod Chaschin, General Director of Blagodat Securities Investment Company, said to UrBC.

Sberbank kept accepting investors’ bids from January 30 to February 20, 2007. The price of the offering amounted to 89,000 RUR, and there was round about $10.5 billion worth of bids. The media report that Alisher Usmanov, the co-owner of Gasmetall Holding, became one of the largest investors (his investments came to $800).

‘There were also 46,000 bids from natural persons, but one has to come up with the ‘average bid’ to see just how much of ‘people’s’ there was in the whole event,’ Mr. Chaschin said.

‘This IPO was actually targeted at relatively large-scale stakeholders (those possessing at least 1% share holdings) wishing to retain or build up their share,’ he explained.

‘There were few bids from non-residents, which might imply that the investors are going to keep their money and get loans in Russia,’ Mr. Chaschin noted.

‘I would just like to emphasize once again that Sberbank has not clearly explained yet just how the money is going to be handled. One could think it was afraid to publish any figures prior to the final results of the offering, but now it is crucial that the investors be told where the money is going to.’