MTS Bank debuted on the stock exchange. As part of the IPO, the company placed shares at ₽2,500 per share. The market value of the bank at the start of trading was estimated at ₽86.6 billion
(Photo: Svetlana Shevchenko/RIA Novosti)
Shares of MTS Bank (MBNK) in the first minute after the start the first trading on the Moscow Exchange increased in price by 10% compared to the placement price of the securities (₽2,500 per share) – up to ₽2,750 per share. This is evidenced by trading data at 15:10 Moscow time.
The capitalization of MTS Bank at the beginning of trading amounted to ₽86.6 billion. The placement price was set at the upper limit of the initial range of ₽2,350–2,500 per share. During the IPO, the company raised ₽11.5 billion. The securities received the first level of listing on the Moscow Exchange and are traded under the ticker MBNK.
MTS Bank raised ₽11.5 billion during the IPO, collecting a record number of applications MTS,AFK System,Banking and finance,IPO
The collection of applications from investors took place from April 19 to 25. The order book on the day of April 24 was oversubscribed by five, and in the evening by more than ten times at the upper limit of the price range. MTS Bank claims that “the offering was a record Russian IPO in terms of demand volume and the number of investor applications.”
“Investor demand was approximately 15 times higher than the IPO volume at the upper end of the price range,” the statement said. More than 200 thousand applications were submitted from retail and institutional investors for a total amount of about RUB 168 billion.
The share of the bank's shares in free float based on the IPO results will be about 13.3%. The majority shareholder, the mobile operator MTS, did not sell any securities during the transaction.
The placement of MTS Bank shares became one of the largest since the beginning of 2024. The last IPO in the banking sector on the Moscow Exchange took place in December 2023, when Sovcombank placed its shares on the site. It collected ₽11.5 billion.
The total allocation to retail investors amounted to about RUB 5 billion, to institutional investors – RUB 6.5 billion. Each application from retail investors received the same percentage of allocation, corresponding to the share of this application in the entire retail demand, but not less than one share and not more than 30 thousand. shares per application.
Allocation is the percentage of satisfaction of an application for the purchase of shares during their initial placement. For example, if an investor submits an application to purchase shares worth ₽100 thousand, but actually receives ₽10 thousand worth of securities when placing securities, then the allocation is 10%. The higher the demand for the issuer's securities, the lower the percentage of allocation based on investor requests.
MTS Bank was founded in 1993. It is among the top 30 credit institutions in Russia in terms of net assets, as well as in the top 15 in terms of retail loan portfolio, according to the Financial Services platform. The main shareholder is Mobile TeleSystems. MTS is 42.1% owned by AFK Sistema, which is controlled by the family of Vladimir Yevtushenkov.
The book of applications for the IPO of MTS Bank was oversubscribed twice in the first hours of MTS ,Banking and finance,IPO,Shares
The net profit of MTS Bank in 2023 increased 3.8 times, to ₽12.5 billion. The bank's net interest income increased by 46%, to ₽35.9 billion, primarily due to an increase in the loan portfolio. The net interest margin at the end of 2023 increased to 9.2% amid accelerated growth in the retail business. Net commission income increased by 59%, to ₽21.4 billion. The credit institution's client base includes almost 4 million users.