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MTS Bank IPO hits Russian market record in terms of demand, number of investor bids

The market capitalization of MTS Bank considering shares issued within IPO amounted to around $945 mln as of April 26

MOSCOW, April 26. /TASS/. MTS Bank’s initial public offering (IPO) totaled 11.5 bln rubles ($125 mln), with investor demand overflowing and exceeding 200,000 bids at the upper limit of the price range of 2,500 rubles ($27) per share, the press service of the credit organization reported.

"The placement became a record Russian IPO in terms of demand and the number of investor bids. More than 200,000 bids were submitted by retail and institutional investors totally worth around 168 bln rubles ($1.8 bln). Investor demand surpassed the volume of IPO on top of the price range by around 15 times. The total volume of IPO reached 11.5 bln rubles ($125 mln) considering the scale of stabilization package. The price of placement was 2,500 rubles per share," the report said.

Consequently, the market capitalization of MTS Bank considering shares issued within IPO amounted to around 86.6 bln rubles ($945 mln) as of April 26. According to financials of the credit organization under International Financial Reporting Standards (IFRS), the bank’s capital equaled 76.3 bln rubles ($833 mln) as of the end of 2023.

The share of MTS Bank’s share in free float following the IPO will total around 13.3%.

MTS Bank is one of Russia’s top 30 banks in terms of scale of assets.