Megafon has set the price range for its initial public offering. At USD 20-25 per share, the IPO will raise a minimum USD 1.69 billion. The selling shareholders also granted an over-allotment option to the bookrunners; if this is exercised, Megafon's market capitalization will be USD 11.2-14.0 billion on the basis of the price range. Following the IPO, Russian investor AF Telecom will still own over 50 percent of the company, and TeliaSonera will have 25 percent. If TeliaSonera keeps its stake over 25 percent, it will have two seats on the board, alongside three for AF and two independent directors. TeliaSonera said it expects proceeds from selling part of its shares of SEK 9-11 billion. The IPO includes shares listed in Russia and GDRs listed in London.
