Published: October 23, 2013
Russian online bank exceeds expectations by attracting US$1.087bn in investor interest.
TCS Group Holding, the company behind Tinkoff Credit Systems Bank (TCS Bank), has completed its IPO on the London Stock Exchange. The offering, in the form of global depositary receipts (GDR), has raised US$1.087bn excluding the exercise of an over-allotment option.
The IPO has far exceeded its target of US$870mn, which itself was boosted from US$750mn due to high investor demand. It comprises 62,111,802 GDRs at US$17.50 each, 10mn of which are newly created, 52,111,802 being sold by existing shareholders. This equates to 34.3% of total share capital.
The over-allotment allocation, which can be up to 15% of existing shares, is exercisable by the bookrunners for 30 days. Goldman Sachs, Morgan Stanley and Sberbank have acted as joint global co-ordinators and joint bookrunners, JP Morgan and Renaissance Capital as joint bookrunners, and Pareto Securities as a selling agent.
TCS Bank provides online retail banking services through a branchless platform. Its CEO, Oliver Hughes, said of the successful pricing: “We have seen rapid growth of the electronic and mobile payments segments as the penetration of Internet and smartphones has been consistently increasing throughout the country... We welcome a broad base of new international investors and look forward with confidence to the next stage in the development of the TCS business as a public company."
The deal is the biggest IPO on the London Stock Exchange by a Russian company since MegaFon, a telco, raised US$1.8bn in November 2012. It is the third largest IPO to have taken place in London during 2013, after Royal Mail's US$2.8bn offering and Riverstone Energy's US$1.2bn deal.