MTS Bank, a fintech subsidiary of a well-known Russian mobile operator, has announced plans for an initial public offering (IPO), despite ongoing Western sanctions targeting Russian banks. It is the second Russian financial institution to pursue an IPO since sanctions were imposed following Russia’s invasion of Ukraine in February 2022.
As reported by Reuters, the Russian Central Bank recently registered an additional 7.187 million ordinary shares for MTS Bank, each valued at 500 roubles, representing a 19.3% increase in the bank’s authorized capital.
The bank stated that proceeds from the IPO would be utilized to support its growth strategy and further expand its high-margin retail operations. Sources familiar with the situation indicated that MTS Bank aims to launch the IPO in the spring and could potentially raise up to $160.3 million.
This announcement comes on the heels of new sanctions imposed by the US Treasury Department on 13 cryptocurrency fintech companies linked to Russia.