MOSCOW Nov 26 The listing of MegaFon , Russia's second-largest mobile phone firm, was boosted on Monday when a large global investment fund placed an order for more than a tenth of the shares on offer, sources said.
Two sources familiar with the offering said the fund had placed an order of up to $280 million for MegaFon shares.
MegaFon, controlled by Alisher Usmanov - Russia's richest man, is trying to sell global depositary receipts in London and Moscow at $20-$25, raising $1.7-$2.3 billion and valuing the business at $11.2-$14.0 billion.
MegaFon was due to finalise the placement on Tuesday with pricing, allocations and trading to begin on Wednesday. Syndicate bankers were due to get an update by around 1700 GMT on Monday.
If syndicate banks exercise an over-allotment option, MegaFon would have a free float of around 17 percent. Nordic telecoms group Teliasonera is selling down its 35.6 percent stake and the company is selling treasury stock.
Some investors have called for the IPO to be priced towards the lower end of the range to ensure MegaFon is competitive against Russia's market leader, New-York-listed MTS, on its earnings multiple and dividend yield.