NEW YORK-Global TeleSystems Group Inc., an American carrier providing wireless and wireline phone service in the former Soviet Republic and Eastern Europe, went public early this month.
The initial public offering of 11.1 million shares, priced at $20 each, surpassed the expected size of 11 million shares and a price each of $19. The carrier granted underwriters, led by Merrill Lynch & Co., New York, an option to purchase 1.7 million additional shares.
Concurrently with the IPO, GTS also sold publicly a $105 million debt issue of 9.88 percent senior notes due 2005. The debt issuance, lead managed by Donaldson, Lufkin & Jenrette Securities Corp., was $5 million larger than anticipated.
Global TeleSystems, headquartered in McLean, Va., said it was among the first foreign telecommunications operators in the former Soviet republics, which are now part of the Commonwealth of Independent States. It began offering cellular service in 1995. GTS Cellular operates networks in Kiev, Ukraine and in 12 regions of Russia with licenses covering a population of about 25 million.
GTS also offers wireless local loop service in the greater Moscow metropolitan area through its 50-percent ownership of Sovintel, a joint venture with Rostelecom, the national long-distance carrier. Sovintel built and operates a fully digital network, which includes microwave and wireless local loop technology.
“Whenever practical, GTS’ businesses integrate and co-market their service offerings in Russia and the CIS,” the preliminary prospectus for the IPO said.
