IPO follows similar cash-raising move by Spain’s Telefonica
MegaFon, Russia’s second largest mobile phone company by customers, is likely to float on London’s stock market this year in a bid to raise $2 billion through the listing of a fifth of its shares. The company, owned by Russia’s richest man Alisher Usmanov, is said to have already been given the green light for the IPO which will also see it simultaneously listed on the Moscow exchange. It is expected to make a formal statement on the IPO in the next few weeks with the deal taking place either later this month or early December, before capital markets wind down for the end of the year.It follows a similar move recently by Telefonica, Spain’s largest phone company, which recently raised 1.45 billion euros ($1.8 billion) by selling shares in its German division.
Meanwhile Morgan Stanley and Russia’s Sberbank are managing MegaFon’s share sale with help from Credit Suisse, Citigroup and VTB Capital.
The company had announced plans for the offering last month but then postponed them to buy a stake in cellphone retailer Euroset, a deal which can now be included in the flotation’s prospectus.