December 22, 2014 18:29


Business as usual

Megafon expects to raise from $1.7-$2.3 billion from IPO

15.11.12 15:21    By Anastasia Matveetva, edited by Karina Ayvazova

Information about the upcoming IPO of Megafon started to spread in April 2012   Photo: Reuters


Copy and paste the html-code below:

The Russian operator "Megafon" plans to raise from $ 1.7 billion to $2,3 billion during an initial public offering on the London Stock Exchange. "Megafon" and one of the largest shareholders of the operator – the Swedish TeliaSonera - plan to offer investors from 15% to 20% of the shares based on prices ranged $ 20-25 per share.

The capitalization of rival Vimpelcom on the New York Stock Exchange is some $ 17.72 billion. The price of MTS, another competitor of Megafon, is about $16.7 billion. The IPO of Megafon in London and on the Russian stock exchange MICEX-RTS is scheduled for November 28, 2012.

Papers of the operator will get the ticker MFON. Meetings with potential investors and collection of applications among institutional investors began Thursday. According to sources of Reuters, roadshow started in New York. Meetings will stop on the eve of the IPO , on November 27, 2012.

Coordinators and Joint Bookrunners of the offering are Morgan Stanley, Sberbank, CIB, and Citi, Credit Suisse and "VTB Capital".

"We are pleased that the process has reached this stage, and in case of a successful IPO we expect to receive from 9 to 11 billion Swedish kronors ($ 1.3-1.6 billion)," - said the president and CEO of TeliaSonera Lars Nyberg. During the IPO TeliaSonera may reduce its stake in "MegaFon" from the current 35.6 to 25% plus one share.

AF Telecom, controlled by the businessman Alisher Usmanov, will continue to own more than 50% of the share capital of "Megafon".

"The high level of interest from the investment community, that we're seeing with the announcement of the planned IPO, provides a good background for the ad price range, start of the road show and book-collecting among institutional investors," said General Director of" Megafon "Ivan Tavrin. "Investors have interest in investing in high-quality assets in the growing Russian telecommunications industry."

Information about the upcoming IPO of Megafon started to spread in April 2012. The official announcement was made by the company in early October. Sources in the investment sphere then said that Megafon was expected to sell 20% of its stake and get around $3 billion.

Last week, following the publication of the quarterly reports of "Megafon," experts spoke of its positive influence on the decision of potential investors.

Tags: Business as usual
Social Reader

Login with Facebook to share content with your friends

About Gazeta.Ru Gazeta.Ru on Facebook Gazeta.Ru on Twitter

© JSC "Gazeta.Ru". (1999-2014). Terms of use.  
License № ФС77-28061 27.04.2007
Founder's address:Vrubel str. 4, building 1, Moscow, Russia 125080
Editor's office address: Malaya Dmitrovka Str. 20, Moscow, Russia 127006
Phone: +7 (495) 980 80 28
Fax: +7 (495) 980 90 73
Distribution free
Editorial staff doesn't bear responsibility for information in advertisements. Editorial staff doesn't provide reference information.
All rights reserved. Design by Olesya Volkova.