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11 May 2007 By Mike Verdin

The Russian bank has priced its IPO near the top of the range. That s largely down to brisk demand for the global offering. It looks like foreigners have fallen for VTB s twin charms of cheapness, relative to rival Sberbank, and state protection.

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VTB, Russia's second biggest bank, priced its IPO at 0.136 roubles per share, near the top of the indicated range of 0.1130.139 roubles.

The IPO was about seven times oversubscribed at the offer price, according to a person familiar with the situation. VTB's global depository receipts, which were only offered to foreign institutions, were oversubscribed 10 times, the person said. About 35% of the IPO went to domestic investors, with the rest going to international investors, the person added. The bank will be listed in London and Moscow.

The IPO, which will raise $8.0bn, values the bank at $36bn.

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