Me­gafon to re­sume road­show for $2b IPO this week

The Pak Banker - - Front Page -


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.

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