MTS Bank announced IPO in push for development

Following this announcement, this initiative will enable MTS Bank to be the second Russian financial institution to hold an Initial Public Offering, following Sovcombank's IPO in 2023, since the West imposed sweeping sanctions on the region on Moscow.

In addition, in early April 2024, the Russian Central Bank reportedly registered an additional issue of 7.187 million MTS Bank ordinary shares with an overall value of approximately USD 5 (RUB 500) each. That represented up to 19.3% of the financial institution’s increased authorised capital. 

More information on the announcement

MTS Bank represents a universal commercial bank that operates and focuses on providing its customers, cardholders, and partners with a secure and efficient suite of services, including cards, deposits, accounts, credits, mortgage, investment, transfers and payments, insurance, as well as premium and private banking solutions. The financial institution relies on the rapid development of retail and small businesses, prioritising the process of combining the convenience and functionality of digital channels with overall physical accessibility through the region. 

The funds that were raised in the Initial Public Offering (IPO) are expected to be leveraged by the MTS Bank in order to implement its overall development and growth strategy, as well as to further scale its retail business. The financial institution is also set to focus on meeting the needs, preferences, and demands of its customers in an ever-evolving market, while also prioritising the process of remaining compliant with the regulatory requirements and laws of the industry. 

According to Reuters, the mobile phone operator MTS, which represents the majority shareholder of the bank, does not plan to sell its overall shares. At the same time, the enterprise will continue to retain a majority stake in the financial institution’s capital. Furthermore, MTS Bank also reportedly planned to launch an Initial Public Offering (IPO) in the spring, while also focusing on the possibility of raising up to approximately USD 160 million (RUB 15 billion).