Russia's Tinkoff Credit firm to place shares worth $870 mln in IPO

MOSCOW, Oct (KOSDAQ: 039200.KQ - news) 14 (Reuters) - Russian entrepreneur Oleg Tinkov's credit card business TCS said it will place shares worth up to $870 million in a London flotation, more than originally expected, to value the company at up to $3.2 billion.

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.

Unsecured lending to Russian households grew by as much as 50 percent last year as the country's emerging middle class demands more consumer goods and banks have rushed into the market as they seek to offset weakening demand for credit from companies.

TCS said it has set a price range for the offering at $14 to $17.50 per global depositary receipt (GDR). The offering is higher than the $750 million originally anticipated.

The offer will include the sale of new shares, raising $175 million for the company, it said.

Existing shareholders including Oleg Tinkov and his private-equity backers - Vostok Nafta, Goldman Sachs (NYSE: GS-PB - news) , Baring Vostok and Ukraine's Horizon Capital - will reduce their stakes.

Tinkov will cut his stake to at or around 50 percent from 61 percent, the company said.

Goldman Sachs, Morgan Stanley (Xetra: 885836 - news) and Sberbank (Other OTC: SBRCY - news) are acting as joint global co-ordinators and joint bookrunners. JP Morgan (Other OTC: JPYYL - news) and Renaissance Capital are acting as joint bookrunners.