MTS Bank is a fintech arm of a popular Russian mobile phone operator and is the second Russian bank after Sovcombank to go for an IPO since sanctions were imposed on Moscow over Russia’s invasion of Ukraine in February 2022.

According to Reuters, in April the Russian Central Bank registered an additional 7.187 million ordinary shares to MTS Bank with a value of 500 roubles each, up 19.3% of the bank’s increased authorised capital.

"The funds raised in the IPO will be used by the bank to implement its growth strategy and further scale its high-margin retail business," the bank said in a statement.

Reuters was told by four sources close to the matter in February that MTS Bank planned to launch an IPO in the spring and could raise up to $160.3 million.

This news comes after 13 Russian-linked cryptocurrency fintechs were hit with further sanctions by the US Treasury Department.