Kcell IPO valued at billions of dollars

Michael Carroll
30 Nov 2012

Kazakh mobile operator Kcell has been priced at up to $2.6 billion ahead of an IPO.

The valuation has been reached based on the Kazakh carrier’s results at end-September, and has been prompted by the decision of stakeholder Sonera – a subsidiary of Nordic telco TeliaSonera – to sell 50 million ordinary shares, the equivalent of a 25% stake in the carrier.

Investment banks UBS, Credit Suisse and Visor Capital are leading the share sale, and the overall valuation makes each share worth between $10.50 and $13. The operator has kicked off institutional book building and a roadshow, which it aims to complete by December 11.

“The IPO marks an important milestone for our company,” says Veysel Aral, Kcell chief executive, adding. “We are delighted with the level of interest being expressed…and are pleased to be introducing Kcell both to the international, and Kazakhstan’s capital markets.”

Aral notes the business is profitable and is operating in a fast growing economy. “With TeliaSonera’s ongoing commitment we are well placed to benefit the increase mobile content and development of data services Kazakhstan.”

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