Euroset sets IPO price guidance $9.25-11.30 per GDR

Euroset Holding N. V., the parent company of Russia’ largest mobile phone retailer Euroset, has set the price guide for its upcoming Initial Public Offering at $9.25-11.30 per share, valuing the company at $2.7-3.3 billion, it said in a statement on Friday.

Euroset plans to sell 252,252 new shares and 1.703 million ordinary shares belonging to Russian billionaire Alexander Mamut, who owns 50.01% of Euroset. Total flotation amounts to 38.2% of capital. The greenshoe option amounts to 15%, Euroset said.

Market sources have previously said Mamut could sell his whole stake.

Euroset’s second core shareholder is VimpelCom, one of Russia’s top three mobile operators, which does not plan to divest its 49.9% stake.

Alfa Capital Markets, Credit Suisse, Goldman Sachs International and VTB Capital are appointed global coordinators and bookrunners. Funds raised in the IPO are to be spent on retail business development and for general corporate purposes, the firm said.

A banking source said Euroset would hold a road-show for two weeks with pricing scheduled for April 14.

In October, Euroset, co-founded by business tycoon Yevgeny Chichvarkin, said it wanted to raise $1.86 billion on the London Stock Exchange.

In 2008, Chichvarkin went into a self-imposed exile in Britain saying he faced imprisonment in Russia and could be killed if put behind bars.

Last September, a British court delayed until next year a hearing into Russia’s request to extradite Chichvarkin, who has been accused in Russia of kidnapping. Chichvarkin has denied the accusations, saying the charges were politically motivated.

MOSCOW, April 1 (RIA Novosti) 

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