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Russian Lender Tinkoff Is Seeking $1.09 Billion in London IPO

TCS Group Holding Plc, the owner of Tinkoff Credit Systems, increased the amount it plans to raise in a London initial public offering to at least $1.09 billion from $870 million, according to an e-mailed statement.

TCS is selling $175 million in new shares in the form of global depositary receipts and $912 million in existing shares, the Moscow-based lender said in the statement. Chairman Oleg Tinkov, who owns 61 percent of the bank, will sell stock, along with Goldman Sachs Group Inc., Baring Vostok Capital Partners, Horizon Capital, Vostok Nafta and Altruco Trustees Ltd.

TCS set the price range on Oct. 14 at $14 to $17.50 a global depositary receipt, valuing the bank from $2.6 billion to $3.2 billion. The order book closes at 4 p.m. London time today and the shares start trading tomorrow, the statement said.

Since it was founded in 2007, Tinkoff has issued more than 3.5 million credit cards in Russia and ranks third in such lending, according to the company. The bank, which has no branches, is modeled on Capital One Financial Corp. in the U.S., a pioneer of card distribution by direct mail, which Tinkov said he learned about while living in San Francisco. Tinkov has created and sold several businesses, including a frozen-food producer, a retail electronics chain, a brewery and restaurants.

Banks managing the offer may sell as much as $163 million in additional shares under an over-allotment option, the statement said. Tinkoff will maintain a stake of about 50 percent, according to the statement.

To contact the reporter on this story: Jason Corcoran in Moscow at jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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