Russian mobile operator eyes $384m IPO on US soil

NEWS Russian mobile phone operator MTS hopes to raise $384m with its June debut on the New York stock exchange. Russian holding company Sistema owns almost 51 per cent of the group, while Deutsche Telekom owns the remaining 49 per cent. Following the IPO, Sistema will have its holding reduced to 43 per cent, while Deutsche Telekom's stake will drop to 42 per cent. Employees will be entitled to buy four million shares under a bonus scheme. However, a prospectus filed with the Securities and Exchange Commission warns potential investors that issues in Russia such as corruption and a renewed push towards centralisation, including the issuing of a mobile operating licence to a state run company, could affect the share value. MTS will be the first Russian company to float on a foreign equity market since the country hit financial crisis in 1998.