scheduled for November 1
Megafon has collected suitcases on the stock exchange
MegaFon, one of the largest mobile operators in Russia, is getting ready for an IPO on November 1. The company plans to settle on the London LSE and MICEX-RTS. During the IPO, the operator can sell approximately 15% of the shares. The majority of the shares will be placed by the Swedish-Finnish shareholder of TeliaSonera, the rest will be the treasury shares of the operator directly.
Two of the three largest Russian telecommunications companies have already placed their shares on the stock exchange. VimpelCom entered the New York Stock Exchange (NYSE) in 1996, and MTS in 2000. Today, companies have a capitalization of $ 18.7 billion and $ 16.7 billion, respectively. Three leading players control 80% of the mobile services market.
“The placement of Megafon already seriously affects MTS quotes, drawing institutional funds from the last funds. However, after the placement, we can expect a rebound in MTS securities. As for Megafon, most likely, the company’s valuation at the placement will include a premium, but long-term its papers may become the most interesting in Russian telecom, “said Ilya Rachenkov, an analyst at Investcafe. Continue reading