Stock market today - Why MegaFon Shares price down debut in london stock market : Shares in Russian mobile phone operator MegaFon tumbled yesterday on a disappointing stock market debut in London. The company, controlled by Russian oligarch Alisher Usmanov, who has a 30 per cent stake in Arsenal Football Club, raised £1.1bn selling stock to investors.
But the shares - priced at $20, at the bottom of the $20 to $25 range and valuing the firm at £6.9bn - fell to $19.60.
MegaFon chief executive Ivan Tavrin, who attended a ceremony at the London Stock Exchange to mark the start of trading, put on a brave face, claiming the demand for shares was 'a clear endorsement of MegaFon's investment case'.
The MegaFon offering was the largest by a telecoms company in London since Orange in 2001 and took the total amount raised by Russian new issues on the London Stock Exchange to £5.1bn this year.
It was the biggest listing by a Russian company since aluminium producer Rusal raised £1.4bn in Hong Kong in 2010.
MegaFon joins 65 Russian companies quoted in London which have raised £42.9bn since 2004. The company’s shares are jointly traded in Moscow and London. For the latest updates PRESS CTR + D or visit Stock Market news Today
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