Wires

MegaFon to offer 15 pct of shares in IPO-paper

MOSCOW, Oct 9 (Reuters) - Russia's second-largest mobilephone operator MegaFon may reduce the size of itsplanned initial public offering to around 15 percent of itsshares from 20 percent expected earlier, Russian business dailyKommersant reported on Tuesday.

MegaFon, in which Russia's richest man Alisher Usmanov tookcontrol in April, received regulatory approval in September tolist 123.38 million shares, or 19.9 percent of the total, inLondon, and analysts estimated the share sale could raise around$3 billion.

According to Kommersant, the company will offer 15 percentof shares, with the bulk coming from Scandinavion co-ownerTeliaSonera . It is expected to announce intention tohold the IPO in London and Moscow on Tuesday.

Separately, a source familiar with the deal told Reutersthat proceeds may total $2 billion, down from earlier estimates.

Pre-marketing, in which MegaFon and its bankers will soundout investors on their interest in buying the stock, starts onTuesday, sources said on Monday.

The IPO roadshow will begin on Oct. 22 and the IPO isexpected to take place on Nov. 1, Kommersant wrote.

MegaFon declined to comment.

(Reporting by Maria Kiselyova; Editing by Douglas Busvine)

((maria.kiselyova@thomsonreuters.com)(+7 495 775 1242)(ReutersMessaging: maria.kiselyova.thomsonreuters.com@reuters.net))

Keywords: MEGAFON IPO/