Monday, 08 October 2012 18:07
MOSCOW: MegaFon, Russia's second-largest mobile phone operator, will start pre-marketing for its London initial public offering on Tuesday, several financial market sources said.
It is expected to make a statement announcing the IPO in the coming days, a separate source familiar with the situation said.
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 in Russia.
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.
Analysts have estimated that the IPO could raise $3 billion, making it the biggest in London since trader Glencore's ...