Romanian telco Digi completes IPO of Spanish subsidiary ahead of market debut

Romania's telecommunications group Digi Communications (BVB: DIGI) has completed the initial public offering of its Spanish subsidiary, Digi Spain Telecom, with the final offer price set at EUR 5.60 per share, the company announced in a filing to the Bucharest Stock Exchange, cited by Ziarul Financiar.

The offering comprised 51.3 million shares and was several times oversubscribed, with investor demand significantly exceeding the number of shares available.

A major contribution to the offering came from the Domínguez de la Maza family, owners of Spanish children's clothing brand Mayoral, which acted as an anchor investor by committing EUR 100 million.

The IPO consisted of a primary offering of 26.8 million newly issued shares, raising approximately EUR 150 million for the company, and a secondary offering of 24.5 million existing shares sold by Digi Romania, worth around EUR 137 million.

In addition, Digi Romania granted the global coordinators an over-allotment option covering up to 7.69 million existing shares to support potential price stabilisation following the listing.

Following the transaction, Digi Communications will retain an approximately 80% stake in Digi Spain Telecom.

The proceeds from the primary offering will be used to finance the continued expansion of Digi's fibre-optic network and mobile infrastructure in Spain, where the group expects annual revenues to exceed EUR 1 billion in 2026.

Shares in Digi Spain will begin trading on the Madrid, Barcelona, Bilbao, and Valencia stock exchanges on July 16 under the ticker symbol DIGIS.

The successful completion of the IPO follows strong investor interest during the book-building process. Before pricing, demand from institutional investors reportedly exceeded EUR 1.3 billion, more than four times the targeted fundraising, while analysts at BNP Paribas, CaixaBank, UBS and Barclays valued Digi Spain at between EUR 1.8 billion and EUR 2.3 billion after the offering, excluding debt.

iulian@romania-insider.com

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