By Dmitry Solovyov
ALMATY, Dec 12 (Reuters) - New shares in Kcell opened trading slightly higher in London as Kazakhstan's largest mobile phone operator raised $525 million in a share sale for its Nordic parent TeliaSonera.
The flotation of a 25 percent stake in Kcell in London and Kazakhstan was priced at the bottom end of its offered range at$10.50 per global depositary receipt (GDR) and 1,578.68 tenge per ordinary share, the company said in a statement posted on the Kazakhstan Stock Exchange website.
The GDRs were trading up slightly at $10.60 in early conditional dealings in London on Wednesday.
The float price, at the low end of a $10.50-$13.00 range, valued Kcell at $2.1 billion, below the price TeliaSonera paid for a 49 percent stake earlier this year.
Telia agreed to the Kcell float as part of its acquisition of a 49 percent stake from state-run fixed-line operator Kazakhtelecom. Telia paid $1.52 billion for this stake, implying a valuation of $3.1 billion for Kcell.
Following the Kcell initial public offering (IPO), TeliaSonera will hold directly and indirectly 61.9 percent of the company's common shares.
Kcell's IPO, which includes an over allotment option of up to 5 million GDRs, followed last month's float by Russia's second largest telecoms operator MegaFon, during which TeliaSonera sold down its 35.6 percent stake in the company.
MegaFon also priced its share issue at the bottom of its guided range, raising $1.7 billion, but the stock is now trading 11 percent above the IPO price.
TeliaSonera CEO Lars Nyberg said the latest share sale reflected a 'positive response' from both Kazakh and international investors to the opportunity to invest in Kcell.
'In a short period of time, and in a relatively tough stock market, we have managed to successfully complete two IPOs,' he said in a statement.
'This increases the value of our stakes in both MegaFon and Kcell, which continues to be one of our most valuable subsidiaries and a strategic asset.'
Telia had said it planned to pay down debt with proceeds from the Kcell and MegaFon sales.
Credit Suisse, UBS and Kazakh investment bank, Visor Capital, were appointed joint global coordinators and bookrunners for the IPO. Renaissance Capital is joint bookrunner and Halyk Finance co-manager of the offer.
Kcell said unconditional trade in the GDRs on the LSE's International Order Book are expected to start on Dec. 17.
The Kazakhstan Stock Exchange will start trade in Kcell shares on Thursday.
(Additional reporting by Mariya Gordeyeva; Editing by Matt Driskill and Hans-Juergen Peters) Keywords: KCELL IPO/
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