Usmanov's MegaFon makes lackluster IPO

Nov 28, 2012, 7:32 AM EST
Customers and staff are seen through the partially cleaned window of a Megafon shop in Moscow November 28, 2012.
REUTERS/Sergei Karpukhin

Russia's second-biggest mobile phone operator, MegaFon, controlled by Russia's richest man, Alisher Usmanov, raised $1.7 billion from an initial pubic offering of its shares. That was at the lower end of the guided range and the shares traded below the offer price after the IPO. MegaFon sold global depositary receipts (GDRs) in London and Moscow in what was still the biggest Russian IPO in three years, offering investors an alternative to New York-listed Russia telecoms companies MTS and Vimpelcom Ltd.