Russian operator MegaFon has set the indicative price range for its IPO at US$20 to US$25 per share.
The sellers, TeliaSonera and MegaFon Investments (MICL) therefore expect to raise at least US$1.69bn and up to US$2.3bn from the listing of up to 20% of…
Russian operator MegaFon has set the indicative price range for its IPO at US$20 to US$25 per share.
The sellers, TeliaSonera and MegaFon Investments (MICL) therefore expect to raise at least US$1.69bn and up to US$2.3bn from the listing of up to 20% of shares in London.
Morgan Stanley and Sberbank are joint global coordinators and joint bookrunners for the IPO, and Citi, Credit Suisse and VTB Capital are acting as joint bookrunners.
The price range puts a value of between US$11.2bn and US$14bn at the operator.
Institutional bookbuilding and the roadshow launched today, the company said, and both are expected to close on 27 November 2012 and dealings in the shares will begin on 28 November.
Following the IPO Alisher Usmanov’s AF Telecom will continue to own a majority stake of more than 50% in MegaFon. Depending on the size of the offering TeliaSonera will keep more than 25%. The Swedish player currently owns 35.6% and MICL owns 14.4%.
MegaFon also announced its dividend policy going forward, saying it expects to pay annual dividends at the higher of 50% of net profit or 70% of free cash flow.
At the new MegaFon board of directors AF Telecom will be represented with three directors while TeliaSonera will send two directors if its stake stays above 25%. Two independent directors will also join the board.
