Float of Tinkov credit firm to raise $1.1bn

City A.M. Reporter
RUSSIAN entrepreneur Oleg Tinkov’s consumer credit provider TCS is aiming to raise around $1.1bn (£680m) in its forthcoming London flotation – higher than the $870m previously expected, a financial market source said yesterday.

TCS Holding Group, owner of Tinkoff Credit Systems, has rivalled state-controlled banks and grabbed market share in the high-margin business of consumer credit. The company focuses on Russia’s regions where it delivers credit cards by courier.

The increased size of the offering is coming from existing shareholders selling more than previously planned, the source said.

Existing shareholders who plan to reduce their stakes are Oleg Tinkov and his private-equity backers – Vostok Nafta, Goldman Sachs, Baring Vostok and Ukraine’s Horizon Capital.

The offer will still include the planned sale of new shares, raising $175m for the company, the source said. When including an over-allotment amount, the total IPO size could be $1.25bn, the source added.

TCS previously said it had set a price range for the offering at $14 to $17.50 per global depositary receipt – known as a GDR.

Tinkov is one of Russia’s best known entrepreneurs, having made his money brewing upmarket craft beer for well heeled drinkers in St Petersburg.

Goldman Sachs was a seed investor in TCS through its subsidiary ELQ Investors and is thought to own around 12 per cent. Tinkov is cutting his stake from 60 per cent to around 51 per cent.