Colombia Movil holds IPO

Millicom International Cellular (MIC) has announced that its Colombian subsidiary Colombia Movil will float a 17.6% stake via an initial public offering (IPO). The sale is expected to raise COP185.1 billion (USD82.5 million). Last year MIC paid USD479 million for a 50% plus one share stake in Colombia Movil, which operates under the Tigo banner. At the time of the purchase MIC agreed to honour a earlier commitment, made by owners EPM and ETB, to float a portion of the company on the stock exchange. According to MIC, Colombia Movil will spend USD200 million in upgrading its wireless network in 2007, part of which will come from the proceeds of the IPO. Investors are required to buy a minimum of 500 shares, requiring an investment of no less than COP10 million.