MOSCOW Oct 5 Russia's second-largest mobile
phone operator MegaFon may start pre-marketing for
its London IPO next week, but is yet to make a final decision
regarding timing, three sources familiar with the situation
The company, in which Russia's richest man Alisher Usmanov
took control in April, had in September asked the local markets
regulator to allow it to list 123.38 million shares, or 19.9
percent of the total.
Analysts estimate that the initial public offering could
raise at least $3 billion, making it the biggest in London since
trader Glencore floated in May 2011.
Nordic co-owner TeliaSonera is expected to offer a
10.5 percent stake and MegaFon is expected to sell 9.4 percent
of treasury shares.
The IPO will give investors the chance to buy into a Russian
telecoms company that is outpacing its peers in a growing home
market, but unlike rivals is shielded from tricky overseas
operations and complex corporate disputes.
The cut-throat market is dominated by three players, MTS
, MegaFon and Vimpelcom, which together control
80 percent of the overall pie.
Usmanov said in an interview with Reuters last week that if
the valuation of MegaFon is good, the company will go ahead with
its IPO. [ID: nL1E8KS2EM]
MegaFon declined comment.