Russian operator MegaFon has received orders for all of the shares in its initial public offering totalling US$2.1 billion, according to Financial Times sources.

One company lodged a bid of US$170 million to acquire a significant proportion of the stock being offered, the sources said. The shares will begin trading tomorrow. 

MegaFon’s IPO prospectus stated a minimum offer size of US$1.7 billion through the sale of global depositary receipts in London and Moscow for between US$20 and US$25. This would value the company at between US$11.2 billion and US$14 billion.

The IPO follows a two-week investor roadshow in which the operator marketed its shares in Europe, Russia, the UK and US.

The primary seller in the IPO is Nordic operator TeliaSonera, which is reducing its stake in MegaFon from 36 percent to 25 percent and expects to receive US$1.3 billion from the share sale.

TeliaSonera president and CEO Lars Nyberg plans to invest US$2 million of his own money in MegaFon shares as part of the IPO.

The IPO – which will be the largest by a Russian company since early 2010 – was delayed by three weeks in order to add its third-quarter results and recent mergers and acquisition activity to its prospectus.

It was also waiting on the UK Listing Authority (UKLA) review of its flotation. According to the report, people working on the MegaFon deal said the UKLA was concerned about lead bank Goldman Sachs dropping out of the offering prior to the IPO roadshow.

Goldman Sachs was concerned about the implications of a restructuring of assets by Uzbeck oligarch Alisher Usmanov, who will continue to own a 50 percent stake plus one share in MegaFon following the IPO.