28/11/2012 London Stock Exchange welcomes OJSC MegaFon to the Main Market
London Stock Exchange today welcomed OJSC MegaFon to open its UK markets, marking the start of conditional dealings in its Global Depositary Receipts ahead of its admission on 3 December.
MegaFon's shares and GDRs were priced at $20 each, valuing the company at US$11.1 billion on admission. The offering raised US$1.7 billion, making it the largest Russian company IPO in London since 2007.
MegaFon is Russia’s 2nd largest mobile operator with c.63m subscribers, representing a market share of over 27% as of 30 September 2012 (according to AC&M Consulting), and the largest operator in the mobile data segment since 2008, a market which has grown at a CAGR of over 44% from 2009 to 2011 (according to AC&M). The Company believes it is well positioned to exploit potential further growth in Russian mobile data and value added services as smartphone and 3G penetration catch up with Western European levels. It operates an extensive 3G network in Russia, offering high performance and service quality, and was the first of Russia’s major mobile operators to offer LTE/4G high-speed mobile broadband data services to its clients.
To mark the occasion Chris Gibson-Smith, Chairman of London Stock Exchange welcomed Ivan Tavrin, CEO of MegaFon to open trading in London this morning.
Chris Gibson-Smith, Chairman of London Stock Exchange Group, said:
"We are delighted to welcome MegaFon to London Stock Exchange today. London remains a deeply attractive destination for Russian companies seeking access to public markets, and Megafon’s offering shows that the City’s ability to supply substantial equity capital to ambitious international businesses remains strong."
Ivan Tavrin, CEO of OJSC MegaFon, said:
"We received high quality institutional demand from all regions in which the securities were offered and the successful pricing of our IPO today is a clear endorsement of MegaFon’s investment case and reflects investor appetite for the Russian mobile data growth story. On behalf of the Board I welcome all our new shareholders and look forward to delivering further profitable growth and value creation as we continue to leverage our leadership in mobile data to exploit the significant opportunities we see ahead.”