Strong demand emerges for Digi Spain IPO ahead of market debut

Digi Communications' Spanish subsidiary has attracted nearly EUR 1.3 billion of demand from investment funds and family offices ahead of its initial public offering, more than four times the targeted fundraising of up to EUR 330 million, according to data analysed by Profit.ro.

The strong investor interest comes ahead of Digi Spain's planned stock market debut on July 16. Based on assessments by BNP Paribas, CaixaBank, UBS and Barclays, the company is expected to achieve a post-IPO valuation of between EUR 1.8 billion and EUR 2.3 billion, excluding debt.

Digi Spain aims to raise up to EUR 330 million through the offering, with the shares expected to begin trading at EUR 5.60 each. The IPO is one of the largest listings involving a Romanian-controlled company in recent years and reflects investor appetite for the group's fast-growing operations in Spain.

According to the banks involved in the transaction, Digi has established itself as the fourth-largest telecommunications operator in Spain by market share and remains one of the fastest-growing players in the market. Analysts cited by Profit.ro described the company as a relatively rare growth opportunity in the European telecom sector, supported by continued customer gains and expansion potential.

The investment case is underpinned by Digi's ability to steadily increase its market share in Spain through a low-cost strategy, although analysts also identified a higher level of indebtedness than many peers as a key consideration for investors.

Another distinguishing feature of the offering is the company's dividend policy. Digi Spain does not plan to distribute dividends before at least 2030, with cash expected to be retained to support further expansion and investment.

The IPO is being coordinated by BNP Paribas, CaixaBank, UBS, Barclays, and Oddo Securities. If completed as planned, the listing will provide Digi Spain with additional capital to finance its continued growth in one of Europe's most competitive telecommunications markets.

iulian@romania-insider.com

(Photo source: the company) ...