Sanctioned Russian lender Sovcombank preparing for IPO in the coming months

By Elena Fabrichnaya

MOSCOW (Reuters) - Russian lender Sovcombank on Wednesday said it was considering an initial public offering (IPO) in the coming months, with shareholders believing that a large bank should be public and that after years of planning, now was the time to list.

Russia's equity capital markets have been starved of deals since Moscow despatched troops to Ukraine in February 2022, prompting sanctions and the departure of Western bankers and lawyers.

Technology company Astra will open the books for its IPO on Thursday, two financial market sources told Reuters on Tuesday, the latest in a couple of small Moscow listings this year that have been characterised by retail investor participation and modest capital raises.

Sovcombank, one of Russia's 13 official "systemically important" credit institutions, said its shareholders would consider the listing at an Oct. 25 meeting.

"Sovcombank has been ready for an IPO for many years," Sovcombank's press office said. "The deadline is as soon as there is a window (informally - December, the window is now)."

The bank registered for an additional share issue in March 2020 in anticipation of a future IPO that did not materialise.

Four banking sources told Reuters in early 2020 that Sovcombank had hired global banks to prepare for that listing.

Sovcombank was placed under US, UK and EU sanctions soon after Russia launched what it calls a "special military operation" in Ukraine.

(Reporting by Elena Fabrichnaya; Writing by Alexander Marrow; Editing by Philippa Fletcher)