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Russia's MTS Bank considering 2022 IPO, says Sistema -RBC

Credit: REUTERS/MAXIM SHEMETOV

MTS Bank, the fintech unit of Russia's largest mobile operator MTS, is considering an initial public offering (IPO) in 2022, the RBC daily reported on Thursday, citing the head of the company's major shareholder, Sistema.

MOSCOW, June 3 (Reuters) - MTS Bank, the fintech unit of Russia's largest mobile operator MTS MTSS.MM, is considering an initial public offering (IPO) in 2022, the RBC daily reported on Thursday, citing the head of the company's major shareholder, Sistema.

MTS is one of several Russian companies developing services beyond its core business, including media, cloud and online streaming. Its first-quarter net profit slipped in results published last month, but the company expects a rapid uptake in digital services to help it deliver on financial goals.

Vladimir Yevtushenkov, head of Russian conglomerate Sistema AFKS.MM, said MTS was continuing to develop fintech and the bank was performing well.

"The idea of doing an IPO of the bank next year is being discussed," he told RBC.

He added that it would be "ridiculous" for the IPO to bring in anything less than $1 billion.

MTS Bank, owned almost entirely by MTS, was Russia's 36th biggest bank by assets as of May 1, with 228.4 billion roubles ($3.12 billion) in assets, according to reporting data.

($1 = 73.2298 roubles)

(Reporting by Alexander Marrow; additional reporting by Elena Fabrichnaya; Editing by Simon Cameron-Moore)

((alexander.marrow@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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