TCS Group Holding has priced the London initial public offering (IPO) of Tinkoff Credit Systems from USD 14 to USD 17.50 for each global depositary receipt (GDR). The pricing would put the value of the Russian lender anywhere from USD 2.6 billion to USD 3.2 billion.

According to Investopedia, a GDR is a financial instrument that is used by private markets to gather capital that is denominated in either US dollars or euros. In an emailed statement, Tinkoff said TCS would sell USD 175 million new shares through GDRs. The IPO is expected to be valued at USD 870 million without including the over-allotment option that would reach up to 15%.

Shares would be sold by Chairman Oleg Tinkov who holds a 61% stake in the bank. Goldman Sachs Group, Horizon Capital, Baring Vostok Capital Partners, Altruco Trustees and Vostok Nafta would also be selling shares.

UralSib Financial Corp Banking Analyst Natalia Berezina said after the IPO, Tinkoff Credit Systems would be valued at USD 1.6 billion.