MegaFon, Russia’s second largest mobile operator by users, received more than enough orders to fill its initial public offering (IPO) on the last day of the sale. The order book is covered at $20 a share, allowing the IPO to raise at least $1.7 billion, according to people with knowledge of the matter. The company declined to comment.

MegaFon, based in Moscow, had initially set a price range of $20 to $25 for the shares. Trading of shares will begin in London and Moscow.

MegaFon, which competes with Russia’s largest mobile operator Mobile TeleSystems, had postponed an IPO marketing campaign in October, raising speculation the demand may have trailed expectations amid the sovereign debt crisis.

MegaFon agreed to pay 50 per cent of profit or 70 per cent of free cash flows in dividends. – Bloomberg