Kcell set to pursue listing in London Investor appetite in London for companies from the former Soviet Union will be tested with plans for the second mobile operator flotation to be announced in the space of a month. Kcell, the largest mobile operator in Kazakhstan, plans to list about a quarter of its equity for up to £500m. Preparations have been concluded, according to those familiar with the process. Credit Suisse and UBS are acting as advisers. All parties declined to comment, but one person familiar with the plans said the company was waiting to see what happens with Megafon, Russia's second-biggest mobile phone operator, which has delayed its own partial flotation as it seeks approval from UK listing regulators. Megafon is seen as a test case for foreign investor sentiment towards Russia and the rest of the former Soviet Union. Kcell's ownership structure is simpler than Megafon. It is majority owned by TeliaSonera, the Swedish telecoms group, which acquired control for $1.5bn at the end of 2011. TeliaSonera also owns a stake in Megafon. As part of the arrangement, TeliaSonera agreed to sell 25 per cent in an initial public offering. TeliaSonera paid about 4.6 times the unit's 2011 projected earnings before interest, taxes, depreciation and amortisation. The group has chosen to pursue the listing in London, with a much smaller stake offered to local investors in the relatively undeveloped Kazakhstan stock exchange. The domestic listing was a stipulation in the sale to TeliaSonera, driven by a desire by the Kazakh government to engender local investor interest in its companies. Kcell generated revenues of $1.2bn in 2011 and ebitda of $705m. It has 12.7m subscribers, which equates to roughly half the Kazakhstan market, with the rest divided between VimpelCom and Tele2. The IPO could mean further payments to KazakhTelecom, depending on the way the share price moves after the listing. About 51 per cent of Kcell is owned by Fintur Holdings - in which TeliaSonera owns 59 per cent - and about 49 per cent is owned directly by TeliaSonera. The UK Listing Authority has not yet given its permission for Megafon to issue shares in London.