The additional capitalization of Ukrgasbank, Bank Kyiv and Rodovid Bank (all based in Kyiv) would cut the value of their shares, according to experts from investment companies polled by Interfax-Ukraine.
The director of the analytical department at Kyiv-based Foyil Securities, Ahshin Mirzazade, said that the present shareholders in the above-mentioned banks would not have a chance to take part in the subscription for new shares due to the large size of the stakes in the banks that the government wants to take under its control.
“The [value of] the shares of minority shareholders will be seriously decreased. For example, in the case of Ukrgasbank, the [total value of shares] would fall to 16% of its present value, and in Rodovid Bank and Bank Kyiv it would fall to 0.1%. The news is positive for the banks, the banking sector and depositors, while for minority shareholders this is a loss of their assets,” he said.
An analyst from Kyiv-based Dragon Capital, Vitaliy Vavryshcuk said that main asset write-downs are ahead, as more than the half of the funds that the government issues to banks during the additional capitalization would be lost.
“Taking into account the large washing out of stakes of present shareholders during the future additional issue of shares and expected write-downs of assets, the value of Ukrgasbank’s shares would fall. One can say the value of Rodovid Bank’s shares is a symbolic indicator,” he said.
The head of the analytical department at Kyiv-based TASK-Invest, Andriy Shevchychyn, said that the news of the additional capitalization of the three banks and the introduction of temporary administration at Ukrgasbank on Wednesday did not influence the quotations of the issuers, as the shares of Bank Kyiv are not listed on exchanges, while the securities of Ukrgasbank and Rodovid Bank are illiquid.
He said that the bid price of Rodovid Bank’s shares on Wednesday grew from UAH 100 to UAH 200 per share, with the ask price remaining unchanged at UAH 3,500 per share.
“Only two buyers and three sellers were on the market for the securities,” he said.
