The parent company “Tinkoff” has previously changed its registration from Cyprus to the island of Russky in the Primorsky Krai. How did the trading start and is it worth buying shares for investors?
Trading in the shares of “TKS Holding” – the parent company of Tinkoff bank, which changed its registration from Cyprus to the island of Russky in the Primorsky Krai, started at 10:00 on the Moscow and Saint Petersburg stock exchanges. The trading opened with a decrease of 2.5%, and half an hour later the decline accelerated to 5.05%.
Before the re-registration on the Russian stock exchanges, depositary receipts were traded under TCS Group, the trading of which was suspended in mid-February. Igor Danilenko, the Director of Investments and Head of the Asset Management Department at Renaissance Capital, discusses the start of trading:
– It is difficult to predict the specific first day, I think there will be a lot of volatility until an equilibrium price is found. But in general, in the short term, even if there is pressure, we do not expect a drop of more than 10% from the previous closing price. Overall, considering the results that Tinkoff has published and the growth of other banks, there is probably a low probability of a negative scenario. And at some point, there will probably be a normal price for buying. We do not expect a drop of more than 10%.
– Is it worth buying today or waiting a couple of days to see how the market reacts to these shares?
– If it drops to some lower boundary within a 10% correction range, it is probably an attractive buying price. If it grows by 15% on the first day of trading, it might be worth waiting for better entry points because there will be a lot of volatility. People who have moved from the external perimeter will not make a decision to sell or not in one day, they will also see how the trading starts. So, I would look at this range of stocks and at the closing price in the last trading days in early March.
Analyst Natalia Pyryeva from “Cifra Broker” believes that buying Tinkoff shares on the first day is quite risky:
Owners of depositary receipts do not need to do anything — all securities stored in Russian depositories have been auto-converted, as reported by the Tinkoff bank press service. When selling new securities, clients will not have to pay any increased taxes.
Tinkoff bank announced on March 14 about plans to merge with Rosbank. More specifically, it was announced the intention to integrate JSC “Rosbank” into the “TKS Holding”. If this plan is implemented, the group will enter the top five largest players in the Russian financial market in terms of household funds balance, top 4 in terms of credit portfolio size, and top 5 market participants in terms of total capital of the banking group.