Major Russian phone operator to go public

Associated Press

MOSCOW (AP) — Russia's second-largest mobile phone operator MegaFon says it will go public in London and Moscow in November.

MegaFon, the last of Russia's big three mobile company to hold an IPO, said on Tuesday in a regulatory filing that it would sell an unspecified amount of stock at Moscow's MICEX and the London Stock Exchange by year-end.

MegaFon is controlled by Russian tycoon Alisher Usamov's investment vehicle.

Shares will be sold by Swedish co-owner TeliaSonera, which owns 35.6 percent, and MegaFon itself.

MegaFon, second only to MTS in the number of subscribers, is focused on the Russian market, unlike MTS and Vimpelcom which have expanded outside Russia.

Moscow-based investment bank UralSib estimates the company value at $13 billion. Analysts speculated that MegaFon could float 20 percent of its stock.

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