29 November 2012
Kazakhstan’s largest mobile operator, Kcell, expects its IPO to raise between $525 and $650 million when it floats 25% of its shares next month.
The operator is hoping for
strong investor interest after
a disappointing debut listing from Russian operator MegaFon
The London and Almaty listing has a price range of $10.50 to
$13.00 per global depositary receipt indicating a lower value
TeliaSonera paid $1.52 billion for a 49% stake in Kcell in
Kcell said that the indicated price range would value the
company between $2.1 billion and $2.6 billion, while based on
the price TeliaSonera paid it would be worth $3.1 billion and a
25% stake in the firm approximately $775 million, according to
Pricing is set to be announced and trading expected to commence
on December 12 2012, according to TeliaSonera.
"We are very pleased to have come this far in the process.
Kcell is an important part of our global operations and one of
the most successful subsidiaries of TeliaSonera. A listing of
Kcell will create value for our shareholders through higher
liquidity and visibility, as well as through a retained
long-term strategic control," said Lars Nyberg, president and
CEO, of TeliaSonera.
Kcell is hoping to attract investors through offering generous
dividends and the growing adoption of smartphones.
The operator has around 48% market share in wireless in
Kazakhstan, with nearly 12.7 million subscribers recorded in
September, according to TeleGeography. The company generated
revenues of $1.19 billion last year with a net profit of $446
Once the IPO is complete TeliaSonera’s effective
ownership of Kcell will have dropped from 86.9% to 61.9%. The
company will also retain the option to buy back 10% of the
global depositary receipts on offer.
TeliaSonera will receive around $1.3 billion from this
week’s IPO of MegaFon after reducing its stake in