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Golden Telecom taps in to NASDAQ with EBRD support
The flotation last week of Golden Telecom on the NASDAQ stock exchange offers enormous encouragement not only to the development of business telecommunications in Russia and Ukraine but also to similar companies hoping to attract international investment. The European Bank for Reconstruction and Development (EBRD), which had made an early commitment to the initial public offering (IPO) as a lead anchor investor, purchased US$ 35 million (EUR 33.5 million) worth of shares in Golden Telecom. Other lead investors included investment affiliates of ING Barings and the Soros Fund. This is the first IPO of a Russian telecommunications business on the NASDAQ since 17 August 1998.
Charles Frank, the EBRD’s First Vice President, said: "The difficult market environment in Russia continues to cloud investor optimism towards the region as a whole. In this respect, we view Golden Telecom’s flotation as a significant achievement and are pleased to support the company’s development plans. As a result of the IPO, Golden Telecom will continue to expand its telecommunications networks and services across the Commonwealth of Independent States (CIS), including Russia and Ukraine." He continued: "With its strong position in the market, the company is well-placed to foster the emergence of innovative and advanced services that are crucial for the overall competitiveness of businesses within the region."
Golden Telecom is a subsidiary of Global TeleSystems Group Inc. (GTS). It is also the holding company for all of GTS’ businesses in the CIS. It is a leading facilities-based provider of integrated telecommunications services to businesses and other high-usage customers and telecommunications operators in Moscow, Kiev, St. Petersburg and other cities in the CIS. GTS is one of Europe’s fastest growing alternative telecommunications operators. Listed on the NASDAQ and the Frankfurt Stock Exchange, GTS has a market capitalisation of approximately US$ 3.5 billion.
As an early entrant in the Russian and Ukrainian telecommunications markets, Golden Telecom has been able to establish a position in the region and has acquired a quality client base. In addition to strong market knowledge, Golden Telecom has the advantage of being the only operator in the region with an integrated service offering fixed line, mobile, data transmission and Internet services.
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