13 February 2006
The London Stock Exchange is delighted to welcome Comstar United TeleSystems (LSE: CMST) to the Main Market.
Comstar UTS is the fixed-line telecommunications subsidiary of Sistema (LSE: SSA). Comstar UTS is a leading provider of integrated communications services in Moscow and the Moscow region, and also offers communications services in other regions of Russia and the CIS. Comstar offers voice, data and Internet, pay-TV and value-added services to corporate, operator and residential subscribers, using its alternative and traditional fixed-line networks, and had over 4 million subscribers at September 30, 2005. Comstar UTS’s ordinary shares are also listed on the Moscow Stock Exchange.
At US$ 1.06 billion, Comstar UTS’s initial public offering is the second largest offering ever by a Russian company after Sistema’s initial public offering in February 2005 (US$ 1.56 billion). The offering was placed with institutional investors in Russia, Europe and other international markets. The Company intends to use the proceeds from the offering to finance its regional expansion, including the build-out of new infrastructure and acquisitions in Russia and the CIS.
Commenting on the successful IPO, Semyon Rabovsky, CEO of Comstar UTS, said: “We are pleased with how the IPO has gone and are delighted to join our parent company Sistema on the London Stock Exchange. The offering received a high level of interest from domestic and international investors, and we are looking forward to working with our new shareholders moving forward. Comstar is well positioned in its core high growth markets and we have the opportunity to develop our businesses both organically and through selective acquisitions in Russia and abroad”.
Deutsche UFG, Goldman Sachs International and Renaissance Capital acted as financial advisers and joint bookrunners to Comstar UTS for the combined Russian and international offering. Latham & Watkins acted as legal counsel to the Company and Linklaters as legal counsel to the underwriters.