Kazakh Kcell announces price range for IPO

ICT Materials 29 November 2012 10:40 (UTC +04:00)

Azerbaijan, Baku, Nov. 29 / Trend E. Kosolapova/

Kcell, the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and subscribers as at 30 September 2012, today announces the indicative price range for the initial public offering of its global depositary receipts.

"The price range for the offering has been set at between $10.50 and $13.00 per global depositary receipt," the company said.

The offering will include the offering of the company's common shares on the Kazakh stock exchange KASE and the offering of the company's global depositary receipts on the LSE outside Kazakhstan.

The offering consists of a sale by Sonera Holding B.V., a wholly-owned subsidiary of TeliaSonera AB, of 50 million of the company's common shares, including common shares represented by the global depositary receipts, representing 25 percent of the company's share capital. The current outstanding share capital of the company consists of 200 million common shares.

The Sonera Holding B.V. will grant to the underwriters a put option to sell back to the Selling Shareholder at the offer price global depositary receipts representing up to 10 percent of the Offering, which may be purchased in the market by the underwriters as a result of stabilisation activities in connection with the Offering.

Based on the offering's price range, the market capitalisation of the company at the commencement of dealings is expected to be between $2.1billion and $2.6 billion.
Institutional bookbuilding and the roadshow commence today and are expected to end on 11 December 2012.

Credit Suisse, UBS Investment Bank and Visor Capital are acting as joint global coordinators and joint bookrunners of the Global Offer. Renaissance Capital is acting as a joint bookrunner and Halyk Finance is acting as a co-manager of the global offer. The domestic offer is being led by Visor Capital.

Kcell has operated in Kazakhstan since 1998, and as of 30 September 2012 it had approximately 12.7 million subscribers, representing a market share of 47.7 percent, as estimated by the Company. Its estimated market share in terms of revenue was 57 percent for the year ended 31 December 2011.