MOSCOW Oct 9 Russia's second-largest mobile phone operator MegaFon may reduce the size of its planned initial public offering to around 15 percent of its shares from 20 percent expected earlier, Russian business daily Kommersant reported on Tuesday.
MegaFon, in which Russia's richest man Alisher Usmanov took control in April, received regulatory approval in September to list 123.38 million shares, or 19.9 percent of the total, in London, and analysts estimated the share sale could raise around $3 billion.
According to Kommersant, the company will offer 15 percent of shares, with the bulk coming from Scandinavion co-owner TeliaSonera. It is expected to announce intention to hold the IPO in London and Moscow on Tuesday.
Separately, a source familiar with the deal told Reuters that proceeds may total $2 billion, down from earlier estimates.
Pre-marketing, in which MegaFon and its bankers will sound out investors on their interest in buying the stock, starts on Tuesday, sources said on Monday.
The IPO roadshow will begin on Oct. 22 and the IPO is expected to take place on Nov. 1, Kommersant wrote.
MegaFon declined to comment.