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
Join the Conversation
- Russia's New Tactical Nuclear Weapons Program Growing Confident Against the US: Talks of World War III
- Apple and Google Engage in Thermonuclear War, New Google Translate Chat App in the Works
- Kobani ISIS Fighter Sends Out Desperate Message For Prayers And Support: Euphoria Turns Into Desperation As Kurds Advance
- Chris Algieri’s Battered Face Trends On Social Media
- Walmart Offers the Best 2014 Black Friday Deals on iPhone 6, iPad Ai2 & Other Gadgets – Reports
- Highest Paid NBA Players 2014: NBA Stars Who Earn More Than LeBron James
- Update Samsung Galaxy S5 to Android 4.4.4 KitKat, Sprint Release and Installation