January 11, 2005 |
|One of Russia’s largest diversified industrial holdings AFK Sistema has begun a preparation for the initial placement offer (IPO) of its securities at the London Stock Exchange. Credit Suisse First Boston and Morgan Stanley banks will manage the IPO.|
The banks have released an official statement on Monday, Jan. 10 saying that they are getting ready to conduct “preliminary education of investors regarding Sistema’s IPO”. The period of informing the investors about the perspectives of the placement usually takes two weeks, after which the banks will begin to actually collect the bids for the Russian holding’s securities. It is expected that the placement will be finished in February.
AFK Sistema is Russia’s largest non-raw company. Established in 1993, it possesses and manages diversified investment portfolio covering various branches of the Russian economy. Among its most prized possessions are Russia’s largest mobile operator Mobile TeleSystems, Moscow’s fixed-line monopoly MGTS, insurance powerhouse ROSNO and Moscow Interbank Currency Exchange. 2003 US GAAP revenues were $3.76 billion, consolidated assets — $6.84 billion.
Vladimir Evtushenkov, chairman of the board of directors, holds 75.6 percent of the company’s shares. Sistema President Evgeny Novitsky holds 4.9 percent, BOD member Alexander Leiviman has 4.9 percent as well.