LONDON, June 6 Georgia's TBC Bank
set the price for its initial public offering
(IPO) of global depositary receipts to be traded in London at
$13, valuing the company at about $640 million.
In a statement on Friday the bank said the total size of the
transaction was $238.7 million, excluding shares offered as part
of an over-allotment option, making it the largest IPO by a
The final price announced before trading began on Friday
came in at the bottom of the $13 to $16 price range set in May,
but in early trading the price jumped more than 4.5 percent to
Global deposotary receipts are used as a way for foreign
companies, often in emerging markets, to access the greater
liquidity and investor base of the London markets.
They are certificates representing underlying shares in the
company and can be traded in London.
The bulk of the deal proceeds go to a group of selling
shareholders including the World Bank's International Finance
Corporation, the European Bank for Reconstruction and
Development, Germany's DEG investment corporation, JPMorgan
and investment manager Ashmore.
Proceeds for the bank from the sale of new shares amount to
about $96 million, which CEO Vakhtang Butskhrikidze said will
put towards expanding its business, focusing on retail banking,
microfinance and lending to small and medium sized enterprises.
Established in 1992, TBC has a 33 percent market share of
retail deposits in Georgia and is the country's second-largest
operator in loans and deposits.
Barclays and UBS acted as joint global
coordinators on the sale.
(Reporting by Chris Vellacott; Editing by Steve Slater and