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.