Sberbank, the largest credit institution in Russia and the CIS, has admitted unlisted, sponsored level 1 American depository receipts (ADRs) to trading though the Admission to Trading Only (ATT) facility on the International Order Book (IOB) of the London Stock Exchange (LSE). The underlying shares are listed on MICEX, the Russian stock exchange.
Sberbank has a market capitalisation of £47 billion. The company will be admitting 1.35 billion ADRs, each representing four ordinary shares, under the ticker ”SBER'. Sberbank will be included in the FTSE Russia IOB index effective from 4 July 2011.
Tracey Pierce, director of primary equity markets at London Stock Exchange Group, said, “We are delighted to welcome Sberbank to trading. As Russia’s largest bank, it will take its place alongside a group of global peers and over 50 other Russian companies trading on the IOB.”
She continued, “Companies want to access the markets in different ways and Sberbank’s admission will give it the opportunity to raise its profile in London whilst benefitting from the liquidity that our IOB can provide.”
The ATT facility is used by securities that are not listed in London or passported on to the LSE's regulated main market or specialist fund market. Listed companies are required to comply with the LSE's admission and disclosure standards and comply with the standards of any other exchange where these securities are listed.
Such securities are not accessible by investors whose mandates specify securities that are listed or admitted to trading on a regulated market.
The facility is designed to be used by companies as a first step towards a full listing of global depository receipts, but are unable to due to regulatory restrictions in their home jurisdiction or because they are going through a restructuring process which may impede listing. The ADRs are regulated by the Securities and Exchange Commission in the US.