Megafon to resume roadshow for $2b IPO this week
OAO MegaFon (MFON), Russia's second- largest mobile- phone company by customers, plans to resume one of the country's biggest initial public offerings as early as this week, according to people with knowledge of the matter.
The company may decide today on a schedule for an investor roadshow, after receiving approval from the U.K. Listing Authority for the stock sale, said the people, who asked not to be identified because the plan is confidential. The preliminary schedule includes Moscow, London, New York, Frankfurt and a Nordic capital, one of the people said.
MegaFon, which plans to complete the IPO before the end of the year in a dual listing in London and Moscow, last month postponed a marketing campaign to include details of an acquisition and third-quarter earnings.
Investors value the company controlled by billionaire Alisher Usmanov at $10 billion to $ 11 billion, people familiar with the matter said last month, meaning a sale of a 20 percent stake could raise $2 billion.
"The timing of the IPO depends on how quickly the prospectus can be updated and finalized," the Moscow-based company said yesterday in an e- mail to Bloomberg. " We intend to hold the IPO this year."
MegaFon's IPO is a part of shareholder agreement reached in April when billionaire Mikhail Fridman's Altimo cashed out of the operator and Usmanov boosted his ownership, resolving years of governance disputes with co-owner TeliaSonera AB. (TLSN) As part of the IPO, Stockholmbased TeliaSonera plans to divest a stake of as much as 10.6 percent, keeping at least 25 percent ownership.
OAO Rosneft (ROSN), Russia's largest oil producer, raised $10.4 billion in an IPO in 2006. That was followed a year later by VTB Bank's (VTBR) $8 billion stock sale. United Co. Rusal (486), the biggest aluminum producer, raised $2.2 billion in a Hong Kong listing in 2010.