HomeNewsMegaFon announces London IPO

    MegaFon announces London IPO


    Russia’s second largest mobile operator, MegaFon, wants to place an IPO on the London Stock Exchange before the end of 2012.

    The operator, which has around 62 million subscribers giving it a market share in Russia of 27%, intends to use the net proceeds of the offering to  finance existing debt and for general corporate purposes including the continuing development and expansion of its network. 

    The operator said that it believes it is well positioned to exploit the potential further growth of the Russian mobile data market as it operates the most extensive 3G network in Russia. It was the first of the Big Three (MTS, Vimpelcom, MegaFon) to offer  LTE/4G high-speed mobile broadband data services to its clients and expects to be in a position to offer its LTE/4G services in over 40 cities, including Moscow and St Petersburg, by the end of 2012. Similar room for growth exists in value added services, where the Company aims to develop innovative services and content.

    It also claims to be the largest operator in terms of mobile data revenue shares.

    Ivan Tavrin, CEO of MegaFon, said, “This is the right time for our IPO, which will support a new stage in MegaFon’s development. We have grown rapidly in recent years, increasing our market share at the expense of our peers on the back of historically high network investment and a strong brand built on excellent product innovation and customer service. 

    "We are now positioned to exploit the further growth potential of Russia’s mobile market as it transitions from voice to high value data and services. We are already the largest player in the Russian mobile data market and were the first major operator to offer LTE/4G services.  With a strategy focused on driving continuing growth, cash flow and returns, I believe we offer investors an interesting investment story as a pure player in the promising Russian telecommunications market.”

    The IPO is expected to comprise a proportion of the existing ordinary shares in MegaFon held by Sonera Holding, a subsidiary of TeliaSonera, and by MegaFon Investments Limited, a subsidiary of MegaFon.