Moscow, Russia — August 17, 2000 — Mobile TeleSystems [NYSE: MBT], a leading provider of mobile cellular telephone services in Russia, today announced the completion of its Initial Public Offering and the registration of its securities issurance report by the Federal Securities Commission of the Russian Federation on August 11, 2000. The offering resulted in the placement of 358,798,698 common shares by MTS.
Under MTS’ agreement with the underwriters of the Initial Public Offering — Deutsche Bank and ING Barings — the underwriters purchased part of the issue for placement as American Depositary Shares (ADSs). Each ADS represents twenty shares of common stock of MTS. As of June 30, 2000 MTS’s ADSs were officially admitted for listing on the New York Stock Exchange under the symbol “MBT”.
The total net proceeds of the initial public offering were approximately $350 million. The proceeds represent one of the largest one-off investments in the Russian mobile telecommunications.
On the day of the listing the company market capitalization was USD 2,1 billion. As of August 15, 2000 the company market capitalization amounted to $2,9 billion, an increase of 37%. This gives it the largest market capitalization among the Russian telecommunication companies listed on the New-York Stock Exchange.
MTS has been assigned a single — “B"-minus long-term corporate credit rating by Standard Poor’s, with a stable outlook. This is currently the highest possible rating for a Russian company.
MTS is headquartered at 4, Marksistskaya Street in Moscow, Russia.
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Mobile TeleSystems OJSC (NYSE: MBT) is Russia’s leading GSM 900/1800 mobile cellular operator. MTS has GSM 900/1800 licenses to provide mobile cellular telephony services in 34 regions of the Russian Federation, covering 45% of the country’s population. It has commenced operations in 19 regions covering 39 million people.