Digi's shares recover this Friday with an increase of over 5% after an 8% drop on their debut on the Spanish stock market, although they still trade below the launch price.
The telecommunications operator Digi has achieved a rebound of nearly 6% on its second day of trading on the Spanish stock market, after recording the worst debut of a company on the exchange since 2016. At midday, the company's shares were trading at €5.44, representing a rise of 5.8% compared to the previous day's close, although they remain 3% below the placement price of €5.6 per share.
A debut to forget
On Wednesday, Digi began trading with a drop of 8%, the worst debut since Telepizza in 2016. Expectations were high, but the geopolitical context and market uncertainty took their toll. The company, controlled by the Romanian parent company and with the family owning Mayoral as a key shareholder with 6%, managed to attract the interest of over 50 institutional investors who participated in the operation.
Digi Spain's CEO, Marius Varzaru, described the IPO as "a milestone" and highlighted that "the strength of our business model has the confidence of its investors." In a statement, Varzaru emphasized that growth is supported by "sustained investment in our own infrastructure, technological innovation, operational efficiency, and commitment to our customers."
An offer of €287 million
The IPO operation included a primary tranche of €150 million and a secondary tranche of €137 million, coming from the sale of shares of Digi Romania. Additionally, there is an over-allotment option of up to 15% that could raise the total size to around €330 million. The parent company will retain 80% of the capital after the placement.
For investors who bought in the IPO, the rebound offers partial relief, although those who entered at the launch price still register losses of 3%. The value still trades below €5.6, leaving a bittersweet taste. Analysts are closely monitoring the evolution of the stock, which shows signs of recovery on its second day, but it will need to consolidate in the coming sessions.
The company, known for its aggressive low-price policy in telephony and internet services, now faces the challenge of convincing the market of its capacity for sustained growth. The confidence of institutional investors, who have entered strongly, is a first step, but the stock price must reflect long-term business expectations.
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