Kazakhstan’s largest mobile operator Kcell has priced its shares at US$10.50 for its IPO which launches today. The valuation is at the lowest end of the pricing band which the telco announced late last month and gives Kcell a market capitalisation of…
Kazakhstan’s largest mobile operator Kcell has priced its shares at US$10.50 for its IPO which launches today.
The valuation is at the lowest end of the pricing band which the telco announced late last month and gives Kcell a market capitalisation of US$2.1bn.
A quarter of the company is to be sold on the London and Kazakhstan stock exchanges. Nordic telco TeliaSonera currently holds the 50 million shares which will be sold and will reduce its stake in Kcell to 61.9% if the float is successful.
Credit Suisse, UBS and Visor Capital are acting as joint global coordinators and joint bookrunners of the London IPO. Renaissance Capital is acting as a joint bookrunner and Halyk Finance is acting as a co-manager. The Kazakhstan float is being led by Visor Capital.
The Kcell float follows another telco IPO on the LSE – Russian company MegaFon, which also saw shares being sold at the bottom end of the pricing range.
A telecoms banker told TelecomFinance last month that he thought Kcell’s offering would attract less interest than MegaFon’s, as the latter is a larger company from a country more popular with investors.
“We are delighted that the IPO of Kcell has received such positive support from investors both in Kazakhstan and internationally,” said Veysel Aral, CEO at Kcell, in a statement today. “Kcell provides an opportunity to participate in Kazakhstan’s robust economic growth through investment in a highly profitable business with an attractive dividend policy backed by the company’s cash flow.
“With TeliaSonera’s on-going commitment, we are well placed to benefit from the increase in mobile telecommunications content and development of data services in Kazakhstan as we strive to further grow the value of the company on behalf of our shareholders.”
Lars Nyberg, CEO of TeliaSonera, commented about the Kcell IPO: “We are very pleased by the positive response from both Kazakh and international investors to the opportunity of investing in Kcell.
“In a short period of time, and in a relatively tough stock market, we have managed to successfully complete two IPOs. This increases the value of our stakes in both MegaFon and Kcell, which continues to be one of our most valuable subsidiaries and a strategic asset.”