(Adds CEO comment, details, financial results)
MOSCOW, April 4 (Reuters) - IBS IT Services plans an initial public offering (IPO) on the Moscow Exchange, it said on Wednesday, as it aims to tap Russia's economic recovery and reviving domestic demand for information technology services.
The shares, both new and existing, will be offered by the company as well as by shareholder IBS Holding, owned by Anatoly Karachinskiy and Sergey Matsotskiy.
Sources told Reuters last month that the company was aiming to raise around $100 million via an IPO.
IBS did not describe the targeted size of the offering in a Wednesday statement announcing its intention to float.
The announcement comes a day after Russian poultry producer Cherkizovo said it planned to sell new and existing shares on the Moscow Exchange.
A number of other Russian businesses are expected to follow suit, brushing off the risk of potential fallout from a recent diplomatic spat between Moscow and the West over the poisoning of former spy Sergei Skripal, as well as the prospect of further sanctions.
The additional share issue is expected to be over 50 percent of the offering, IBS said. Citigroup and Renaissance Capital are acting as joint global coordinators and joint bookrunners.
Following the offering the free float is expected to amount to 30 percent to 35 percent of the enlarged share capital.
IBS also said it intends to use the proceeds to strengthen and expand its business through both internal development and value-accretive M&A.
"We believe that the recovery of the Russian economy, as well as increased digitalisation and modernisation, will provide a strong platform for further growth," Svetlana Balanova, IBS's chief executive, said in the statement.
Balanova told Reuters earlier that IBS was considering fundraising to accelerate growth as, on the one hand, a reviving economy was spurring demand for IT, while on the other hand, many businesses were seeking affordable alternatives to foreign software.
The company, which was founded in 1992, said it was targeting revenue growth of more than 15 percent in 2018.
For the year to March 31, 2017, net profit more than doubled to 1.5 billion roubles ($26 million) on revenue up 29 percent to 21.4 billion roubles.
$1 = 57.8400 roubles Reporting by Olga Popova and Maria Kiselyova; writing by Polina Ivanova;