TALLINN STOCK EXCHANGE

ANNOUNCEMENT

11.02.99

 

Estonian Telecom IPO - Price Announced

 

Minister Raivo Vare, the Minister of Transport and Communications 

of the Republic of Estonia, announced today details of the pricing 

and allocation policies for the Initial Public Offering of 

Estonian Telecom.

 

- The Estonian Telecom Initial Public Offering is the largest 

ever equity offering by Baltic company

 

- The price of the shares sold in the Offering has been set at 

the top of the indicative price range at EEK 85 per share, 

equivalent to US$ 18.45 per Global Depositary Receipt (GDR), 

where one GDR represents three shares. The issue price was 

established based upon the results of a domestic and 

international bookbuilding exercise

 

- Total demand of approximately EEK 860 million was received from 

Estonian retail and Baltic institutional investors 

 

- Over 8,200 individual investors in the Estonian offering 

applied for shares

 

- International Offering was significantly oversubscribed at the 

issue price, by investors recognised as being the world’s 

largest and most sophisticated institutional investors, with 

further substantial support coming from other international 

institutions

 

- As part of the Offering, the Company’s existing strategic 

investors, Telia of Sweden and Sonera of Finland, have taken up 

their preferential allocation rights in full in relation to 

3,434,579 shares, in aggregate, at the offer price

 

- The total allotment of the Estonian offer was 5,061,180 shares 

and 30,953,820 shares were allocated internationally, including 

the shares allocated to Telia and Sonera

 

- Gross proceeds raised by the Estonian Government in the 

Offering amount to EEK 3,061 million (assuming exercise of the 

over-allotment option)

 

- Implied market capitalisation (post-restructuring) of Estonian 

Telecom of EEK 11,678 million, at the offer price

 

Commenting on the successful completion of the transaction, 

Minister Vare said:

“This is the largest Baltic equity offering ever. Demand from 

domestic and international investors was overwhelming and 

represents a strong endorsement of the privatisation programme of 

the Estonian Government and the business prospects of Estonian 

Telecom. I am particularly pleased by the response from Estonian 

investors and both retail investors and employees have been 

allocated to the fullest extent possible; overall we have 

allocated Estonian investors approximately 50% of the domestic 

demand subscribed. The valuation of Estonian Telecom reflects its 

qualities, as demonstrated by the response to the Estonian and 

international roadshow programme, an at the IPO price we have 

achieved an excellent valuation relative to its Central and East 

European telecommunications peer group. 

 

For further information:

 

Tommy Biene

Ministry of Transport and Communications of Estonia

Telephone:  +372 639 7675