MegaFon, Russia’s second largest mobile operator by subscribers, will press ahead with its plans to stage an initial public offering (IPO), Bloomberg reports, noting that the share sale scheme could become the largest IPO by a Russian company since VTB Bank’s in 2007. Swedish co-owner TeliaSonera could divest a stake as large as 10.6%, retaining a 25% holding in the company, while MegaFon will also offer its own stock as part of the transaction; shares will start trading in London and Moscow this quarter. MegaFon stands to raise around USD3 billion from the sale of a 19.9% stake.
However, an unconfirmed report by Russian business daily Kommersant suggests that MegaFon could reduce the size of its IPO from 19.9% to 15%. In September this year, the carrier received regulatory approval to list 123.38 million shares, or 19.9% of the total. Pre-marketing, in which MegaFon and its bankers will sound out investors on their interest in buying the stock, is expected to start on Tuesday.