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
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.