MegaFon Plans to Raise $1.7bn-$2.3bn in London and Moscow IPO
By Geetha Pillai | November 15, 2012 8:01 PM EST
Russia's second largest mobile operator MegaFon has set its Initial Public Offering (IPO) at a price range of $20 to $25 a share to raise $1.7bn to $2.3bn.
MegaFon and its Swedish shareholder TeliaSonera are planning to sell 15 percent of the MegaFon stake and trading is expected to begin in London and Moscow on 28 November.
At the given price range, the company is valued at $11.2bn to $14bn, MegaFon said in a statement. Analysts have estimated a fair value of $12bn to $16bn for the company.
Though TeliaSonera helped set up the company, disputes over the conduct of the company and strategic policies were part of the partnership since the beginning. MegaFon is controlled by Russian billionaire Alisher Usmanov who will retain his stake in the company.
TeliaSonera has decided to reduce its stake in the company and MegaFon is also selling its treasury stocks to cut down its debts amounting to 159m roubles.
MegaFon reported a 20 percent jump in its third quarter profits to 14.9bn roubles ($470m) boosted by increased revenues from adding new customers. The company has 63 million users in Russia.
The IPO proceeds are expected to be used for debt reduction and network improvements.
To contact the editor, e-mail:
Most Popular Slideshows
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- What Happens When You Give Up Sex For 12 Months? – Dialogue With Peter Lynagh – Exclusive
- 2014 US Open: Hottest Female Tennis Athletes [PHOTOS]
Join the Conversation
- iPhone 6 To Boost Telstra’s Income By $500 Million
- Smaller Australian Telcos Required To Have Usage Alert For Customers To Avoid Phone Bill Shock
- BlackBerry to Host ‘See The Bigger Picture’ Event in London, Dubai & Toronto on Sep 24
- Addiction Rehabilitation Leader BioCorRx, Inc. Participates In San Francisco’s eMoneyShow
- 5.5-Inch iPhone 6 is iPhone Air on Sept 19 Release Date: 5 Things to Consider Before Buying
- Pricey iPhone 6 on Release Date Likely but with 3X Retina Resolution & Mobile Payment Service – Reports
- Nexus 6 Release Date Update: Moto X+1 Look Leaked, Nexus X or Shamu Moved to Demo Phase
- Google Nexus 8 Confirmed as HTC T1 aka Volantis/Flounder with Freshly-Leaked Specs & Features – Reports
- HTC One M8 for Windows Vs. Nokia Lumia Icon, The Battle Of Windows Phones
- Europe, US Next on ISIS’ Hit List, Says Saudi King; Seized ISIS Laptop Reveals Terrifying Bio-Warfare Plans
- iPhone 6 On Release Date To Feature Qualcomm MDM9625M LTE, 1GB RAM, Mobile Payment Deal With AMEX, 1334x750 Display