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.

Kcell valued at over $2 billion in IPO

Kazakhstan mobile operator Kcell has priced its IPO at $10.50-13.00 per global depositary receipt. This gives the company a market capitalisation of $2.1-2.6 billion. Pricing of the IPO is expected on December 12, with trading in Almaty and London to begin the same day.

The offering consists of a sale by TeliaSonera of 50 million shares, including the GDRs, representing 25 per cent of Kcell's share capital. After the IPO, TeliaSonera's stake will fall to 61.9 per cent.

TeliaSonera to sell shares in Kcell IPO

Kazakhstani mobile operator Kcell announced its intention to conduct an initial public offering of its shares in the form of global depository receipts (GDRs) and a concurrent offering in Kazakhstan in the form of common shares.
The offering will comprise the sale of existing shares held by Sonera Holding, a wholly owned subsidiary of TeliaSonera, of up to 25 per cent of the shares in Kcell. TeliaSonera is required to sell the stake under the terms of its original acquisition of a stake in Kcell from Kazakhtelecom.
Kcell chief executive Veysel Aral told the reporters that the group would aim to list the majority of the shares in London in order to develop an international investor base, with a smaller portion of shares listed in Kazakhstan.
TeliaSonera -- that operates Ncell in Nepal -- will remain the majority owner of the group with a 62 per cent stake. Kcell is the largest operator in Kazakhstan with almost half of subscribers and a 57 per cent share of revenues.