November 28, 2012 / 7:11 AM / in 5 years

MegaFon prices IPO at bottom of range, raises $1.7bln

MOSCOW, Nov 28 (Reuters) - Russia’s second-biggest mobile phone operator MegaFon priced its initial public offering at the bottom of its guided range on Wednesday, raising $1.7 billion.

Controlled by Russia’s richest man Alisher Usmanov, MegaFon is selling global depositary receipts (GDRs) in London and Moscow.

The IPO at $20 per GDR - the bottom of a $20-$25 share range - values MegaFon at $11.1 billion and is the biggest stock market listing by a Russian company since aluminium producer RUSAL floated in Hong Kong in 2010.

In the offering, Nordic telecoms firm Teliasonera is selling down its 35.6 percent stake and will retain an interest of 29 percent in MegaFon. MegaFon is also selling treasury stock.

Morgan Stanley and Sberbank are acting as joint coordinators, with Citigroup Inc, Credit Suisse and VTB as joint bookrunners.

MegaFon will have a free float of 15.2 percent, prior to exercising the over-allotment option, the statement said.

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