Investors will be offered shares of the bank issued as part of an additional issue. The funds raised during the IPO will be used by the bank to implement a growth strategy and further scale the high-margin retail business.
MTS Bank demonstrates one of the highest growth rates in unsecured retail lending on the market. In 2020-2023, the bank's loan portfolie1 grew at an average annual rate of 39%, more than twice ahead of the market as a whole. The bank's capital grew at an average annual rate of 31% during this period.
Our own expertise in retail banking and integration with the ecosystem of Russia's leading telecom operator create significant potential for further profitable business growth and an increase in the share of the Russian retail lending market. In the medium term, the Bank aims to double its loan portfolio and customer base (up to 8 million active customers), expecting a gradual increase in return on equity (ROE) to the level of 30%.
The placement consists exclusively of shares issued by the bank as part of an additional issue. The funds raised by the bank during the IPO will be used to implement a strategy for further growth; as part of the placement, the bank's majority shareholder, MTS PJSC, does not plan to sell its shares; Following the results of the IPO, MTS PJSC will retain a majority stake in the bank's capital; it is expected that the bank, its majority shareholder and their affiliates will assume obligations related to the restriction on the alienation of shares within 180 days from the date of the start of trading in shares on the Moscow Stock Exchange; the IPO provides a stabilization mechanism for up to 30 days after the start of trading; participation in the IPO will be available to qualified and unqualified investors — individuals, as well as institutional investors.
It will be possible to apply for the purchase of Shares through leading Russian brokers, including through a broker of MTS-Bank PJSC. The technical details of the application procedure will be published later.
If a decision is made to conduct an IPO, the bank will disclose the necessary additional information on its official website and in the Corporate Information Disclosure Center.
MTS Bank PJSC (MTS-Bank PJSC) is a universal commercial bank, one of the 50 leading Russian banks. MTS Bank's network of service offices covers more than 50 cities in 30 of the largest regions of Russia. The main shareholder is a private limited liability company "Mobile TeleSystems B.V." – a subsidiary of PJSC "Mobile TeleSystems".
