MOSCOW Nov 28 Russia's second-biggest mobile phone operator MegaFon is poised to price its initial public offering at the bottom of a $20-$25 per share range on Wednesday, a source close to the deal said.
At $20 per GDR the IPO would value MegaFon at $11.2 billion and raise $1.7 billion, making it the biggest stock market listing by a Russian company since aluminium producer RUSAL floated in Hong Kong in 2010.
Two financial market sources said on Tuesday they expected the offer to be priced at the bottom of the range, after sources familiar with the offering said the order book had been covered at that level.
MegaFon, controlled by Russia's richest man Alisher Usmanov, is selling global depositary receipts (GDRs) in London and Moscow. A pricing announcement is due on Wednesday morning, with first trading to follow directly afterwards.
In the offering, Nordic telecoms firm Teliasonera is selling down its 35.6 percent stake and will retain an interest of at least one-quarter in MegaFon. The company is also selling treasury stock.
Morgan Stanley and Sberbank are acting as joint coordinators, with Citigroup Inc, Credit Suisse and VTB as joint bookrunners. If banks exercise an over-allotment option, MegaFon would end up with a free float of around 17 percent.