"We will need additional financing sometimes in the fall [2006], closer to September," the company's president Eldar Razroyev said, adding that Euroset was considering various instruments, from a syndicate loan to a bond issue.
Razroyev said the company, which was founded in 1997 and posted consolidated revenues of $2.6 billion in 2005, was not considering credit-linked notes because they did not help improve its credit history.
"We are getting ready for an IPO and we have to create a credit history," he said.
Razroyev also said Euroset had stopped buying cell phones from global telecoms giant Motorola after the Russian customs service impounded a large shipment of its phones at the end of March and destroyed 50,000 units because they allegedly violated health safety regulations.
Euroset has 1,000 stores and has diversified in the last few years into the non-mobile business by selling foreign-made electronics, including digital cameras, CD and MP3 players.
