MegaFon to list for IPO in London and Moscow

05 September 2012 | Kavit Majithia


MegaFon has opened procedures for a $20 billion IPO listing in London and Moscow.

Bankers predict the move could lead to increased private equity offerings coming out of Russian companies later this year.

MegaFon, controlled by billionaire Alisher Usmanov, has filed to float a 20% stake, thought to be worth approximately €4 billion in London and Moscow, according to the Financial Times.

Part owned by the Swedish group TeliaSonera, the company said it was looking at the market situation before confirming the move.

If it goes ahead, MegaFon will carry out the issue next month, and the move is considered significant as it will test investors' demand for Russian shares. Russia is considered more favourable for investment because of the present Eurozone crisis.

MegaFon is one of four companies to win licences for 4G roll-out in Russia, and it is thought to be an attractive investor prospect considering its positioning to roll out high-speed data services. The company is also in talks to buy a stake in mobile retailer Evroset, to boost its retail offering.

Goldman Sachs and Morgan Stanley will lead to IPO, according to reports.