The placement is part of the 2011-2013 Privatization plan. As a result, the Central Bank retains precisely the controlling stock: today it owns 60,3% Sberbank ordinary shares, or 57,58% capital. The Central Bank planned the deal a year ago, but the green light was given only on Friday night, according to a source close to the underwriters.

What hindered the deal last year helped now. The placement was jeopardized by the market crash that followed the downgrading of USA and Europe. Today it has become possible due to a stock market rally caused by the newly announced FRS and ECB stimulus package. Russian indices soared 4-7% on Friday. The Central Bank and Sberbank had the deal ready for announcement yesterday.

"I couldn`t wait for Monday to announce the deal. A desicison like that is not made overnight, but luckily for us, the USA, Europe and China all announced their stimulus packages at once", said Gref. "There can`t be a better moment to get the price right".

The price, however, was lower than announced by First Deputy Chairman of Sberbank Alexey Ulyukaev. In early 2012, he named RUB 100 as the `best price` per share, and yet Sberbank only hit the mark once, in spring. The Central Bank did not proceed with the deal at the time due to the crisis.

This time, the Central Bank set a minimum of RUB 91, says the Sberbank release. The bottom was set by the underwriters according to last week`s median price with a 5% discount, explained Sberbank Deputy Chairman Bella Zlatkis. The price maximum was the market price at the closing of the books.

Sberbank is traded in Moscow and London (GDR), but since most of the trading is in Russia, the market price can be Moscow Stock Exchange, says Gazprombank analyst Andrey Klapko. It went down 1,5% yesterday and hit RUB 95,57 (MICEX index lost 0,3%). "The share price fell only marginally", said Gref.

At RUB 94 per share, the placement was almost twice overbooked, with bids as large as USD 300mn, says a fund manager, who bid through London. Bids worth hunderds of millions USD came from major investment funds, including US-based TPG Capital, confirms an underwriter source, without disclosing bid amounts: they were all bloated to reach the desired volume — "overbooked and closed". TPG was the anchor investor of last year`s VTB SPO, bidding large and collecting stock worth USD 100 million.

Even if the Central Bank sells at the bottom, the stock will be worth RUB 155,9 bn. Sberbank stands a good chance of placing close to the market, says Klapko.

The float takes place in Moscow and London (LSE), but roadshow was global. Russia will get 10% of the float, but if domestic demand is higher, the volume is likely to reach 15%.

Sberbank Investment, a subsidiary, could become another major investor in Sberbank, owning up to RUB 20bn, says the bank release. "We do this to protect the share price from short sellers", says Zlatkis. "It`s common practice". Sberbank aims to cut down the `speculation factor`, agrees Klapko. Part of the stock could go towards options for top managers, said Zlatkis, however this program is yet to be approved and the volume is unclear.

Employees are not invited to take part this time. "There will be no offers for Sberbank managers", said Zlatkis, adding that there are also none planned for the underwriters. However, managers and affiliates taking part in the SPO are not allowed to sell their stock for 6 months, said Zlatkis.

Project Group №1, Herman Gref, Bella Zlatkis