OREANDA-NEWS  MTS Bank plans to raise 10-12 billion rubles in capital as part of the IPO, said Sergey Ulyev, Vice President of the bank.

"The volume of placement is 10-12 billion rubles. We are counting on the terms of the deal in the coming days," he said at the webinar of the Sinara investment bank.

He added that the price range of the placement will be announced in the coming days. "Significant work on the formation and understanding of the price has been done, now the final touches are being put, and we will make this information public," the vice president said.

MTS Bank would like to collect a "balanced" book of applications, including with the participation of institutional investors.

"Of course, we are carefully studying the experience of previous transactions in the market and here we want to follow a non-speculative path in order to raise the price to the maximum and launch an unbalanced demand there. We want to make a balanced "book" with the participation of institutional investors, quite significant. We will determine the specific parameters at the time of the formation of the "book". We will probably have another friends & family part (shares will be offered to employees of the bank and the group)," Ulyev said.

MTS Bank announced plans to hold an IPO on the Moscow Stock Exchange on April 12. Investors will be offered shares of the bank issued as part of an additional issue. The credit institution can increase the authorized capital by 3.6 billion rubles - up to 18.6 billion rubles by placing additional ordinary shares in the amount of 7,187,042 units with a nominal value of 500 rubles each.

The funds raised will be used to implement the growth strategy and further scale the bank's high-margin retail business. As part of the placement, MTS PJSC, the majority shareholder of the bank, does not plan to sell its shares. Following the results of the IPO, MTS will retain a majority stake in the bank's capital.

"Having an assessment of stocks and their liquidity allows you to look more flexibly at options for non-organic development. There are different banks and various other financial assets on the market now. Not all of them have a clear understanding of how to grow and ensure profitability, and accordingly they are ready to get out of this to some extent, to make some kind of inorganic scenarios. We are also considering such options, and this will certainly add some flexibility and optionality to this," Ulyev said.

He added that so far the bank's shareholders have no additional plans for SPO and buyback.

MTS Bank, according to the new dividend policy, plans to allocate from 25% to 50% of profits to dividends, Dmitry Serebrennikov, head of the financial unit of MTS Bank, said at the webinar. The bank plans to make the first payments by the end of 2024, that is, in 2025, he noted.

MTS Bank ranked 24th in terms of assets in the Interfax-100 ranking by the end of 2023. The bank's net profit under RAS for the first quarter of 2024 increased by 32%, to 3.7 billion rubles, and the loan portfolio of individuals amounted to 359 billion rubles.