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December 21, 2012

Kcell successfully completes its ice-breaking debut $525 MM equity offering on the LSE and the KASE

JSC Halyk Finance, as a Co-Manager of Sonera Holding B.V.’s public offering of JSC Kcell’s (“Kcell”, the largest mobile telco operator in Kazakhstan) common shares (“Shares”) in Kazakhstan and global depositary receipts (“GDRs”) internationally, has successfully executed Kcell’s ground-breaking $525 MM public equity dual offering conducted simultaneously on the LSE’s main market and the KASE. The deal was priced at $10.50 per GDR (the “Offering Price”) and KZT 1,578.68 per Share on December 12th, valuing Kcell at a very impressive $2.1 billion. Kcell’s debut ice-breaking $525 MM transaction consisted of the $51.2 MM domestic offering represented by 4,876,472 Shares and the $473.8 MM international offering represented by 45,123,528 GDRs (with 1 GDR representing 1 Share), having firmly set numerous industry benchmarks by being

 

  • the LARGEST public equity offering out of Kazakhstan since 2007,
  • the 1st dual-listed equity offering ever made by Kazakhstan’s telecom issuer, and
  • the 2nd LARGEST frontier market IPO globally since 2010.

 

Kcell’s offering was warmly welcomed by the investors throughout the globe – despite the fact it took place right after Megafon’s (Russia’s 2nd largest mobile telco operator) IPO at a year-end when investors are not at all inclined to consider and take any extra risks – with a comfortably oversubscribed book represented by over 100 international accounts including Kazakhstan-based investors who were allocated a hefty 29% of the $525 MM offering. As always, JSC Halyk Finance has timely conducted its rigorously comprehensive investor education – having vigorously and persuasively marketed all key institutional investors in Kazakhstan – and has played a crucially important role in Kcell’s complex transaction advisory and bookbuilding process, directly securing the subscription of Shares and GDRs worth over $59.5 MM – i.e. 11.3% of the total offering and 40% of Kazakhstan’s allocations.

 

On its 1st trading date, Kcell’s GDRs closed at $11.05 per GDR which constitutes a healthy 5.2% increase over the Offering Price, thus demonstrating Kcell’s strong well-thought-of performance in the secondary market. 

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