NEW YORK (TheStreet) -- Shares of VimpelCom (VIP) were sliding 5.77% to $3.67 on heavy trading volume mid-Monday morning after the Amsterdam-based telecom company announced a public offering of 142.5 million American depositary shares.
Each ADS represents one common share, according to a company statement. Pricing for the offering has not yet been determined.
The selling shareholder, Telenor East, is a subsidiary of Norway-based telecom company Telenor USA (TELNY). VimpelCom will not receive any of the proceeds from the sale.
Telenor is granting the underwriters the chance to buy up to 21.375 million additional ADS shares.
Morgan Stanley, JPMorgan, Citigroup and Credit Suisse are joint bookrunners for the offering.
More than 2 million shares of VimpelCom have traded hands so far today vs. the 30-day average volume of about 752,000 shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: VIP