Russian entrepreneur Oleg Tinkov’s banking business TCS Group Holding will float $870m worth of shares in its upcoming London IPO.
The company said its shares will be placed at between $14 and $17.5 per share, valuing the business at $2.6bn to $3.2bn.
TCS will sell new shares as part of the IPO to raise $175, while Tinkov and other shareholders including Goldman Sachs, Baring Vostok, Horizon Capital and Vostok Nafta will reduce their stakes.
CEO Oliver Hughes said, “We believe that TCS Bank offers an attractive opportunity to invest in the rapidly growing Russian consumer, Internet and financial services markets, across which TCS Bank operates.
“TCS Bank has continuously been at the forefront of innovation in the Russian financial services industry, having built an advanced branchless platform with low customer acquisition costs to effectively reach out to a broad base of customers across Russia, particularly in underserved parts of the country.”
The bank has previously said that it will use most of the proceeds to expand its retail lending business.
Goldman Sachs, Morgan Stanley, Sberbank CIB, Morgan and Renaissance Capital will act as joint bookrunners for the IPO.
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