Sweden’s TeliaSonera is to receive US$525 million via the IPO of its Kazakh arm, Kcell, which began trading in London this morning.

Fifty million of TeliaSonera’s shares in Kcell – Kazakhstan’s largest mobile operator – have been priced at US$10.50, giving the firm an enterprise value of US$2.1 billion at listing. The price is at the bottom end of the US$10.50 to US$13.00 range indicated last month.

TeliaSonera’s stake in Kcell is to fall from 86.9 percent to 61.9 percent following the sale. It is the second London listing by a TeliaSonera affiliate this month, following the completion of a US$1.7 billion IPO by Russian operator MegaFon.

“In a short period of time, and in a relatively tough stock market, we have managed to successfully complete two IPOs. 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,” said Lars Nyberg, TeliaSonera CEO.

“Kcell provides an opportunity to participate in Kazakhstan’s robust economic growth through investment in a highly profitable business with an attractive dividend policy backed by the company’s cash flow,” added Kcell CEO Veysel Aral.

Kcell has 12.7 million subscribers, representing a dominant 48 percent share of the Kazak mobile market.