Kcell share offering priced at bottom of range

TeliaSonera's Kazakhstani subsidiary Kcell has announced the pricing of its initial public offering at $10.50 per GDR and KZT 1,578.68 per common share, with each GDR representing one share. The price is at the bottom of the earlier indicated range of $10.50-13.00 per GDR. Trading commences on December 12.

Based on the offer price, Kcell's market capitalisation is approximately $2.1 billion at listing.

The offering consists of a sale by TeliaSonera of 50 million shares, including shares represented by GDRs, representing 25 per cent of Kcell's share capital.

Following the offering, TeliaSonera will directly and indirectly hold an interest of 61.9 per cent in Kcell. TeliaSonera will receive $525 million (approximately SEK 3.5 billion) in proceeds from the offering, assuming that the book-runners' put option is not exercised.