MegaFon forced to price IPO shares at low end of range

29 Nov 2012

MegaFon shares made a disappointing debut, as the Russian cellco’s long-awaited USD1.7 billion initial public offering (IPO) got underway in Moscow and London, Bloomberg reports. Indeed the company – the last of Russia’s self-styled ‘Big Three’ mobile operators (alongside Vimpelcom and Mobile TeleSystems [MTS] to hold an IPO – was forced to price its stock at the bottom end of its target range. On Wednesday MegaFon revealed that it had sold 15% of its stock at USD20 a share, meaning that the flotation values the company well below analyst expectations of USD11.1 billion.

Russia, MegaFon