The Romanian telecom has set the price per share for its debut on the Spanish stock market at €5.6, resulting in a market capitalisation of €1.662 billion following the capital increase. The offer still requires approval from the CNMV.
Digi has taken a firm step towards its debut on the Spanish Stock Exchange. The telecommunications company, led by Marius Varzaru, announced on Thursday that the price of the public offering for sale and subscription (OPS) will be €5.6 per share. This amount, following the planned capital increase, places the telecom's market capitalisation at approximately €1.662 billion.
The offer, which is still pending the approval of the prospectus by the National Securities Market Commission (CNMV), will include both newly issued shares and existing titles. According to the company, the approval process is underway and, once completed, the prospectus will be available on Digi's website and on the CNMV portal.
The offering period is expected to begin immediately after the regulator gives the green light. Digi warns that any acquisition of shares must be made solely on the basis of the approved prospectus, and that the CNMV's authorisation does not imply a valuation of the merits of the offer.
An offer of 51.3 million shares between primary and secondary
The operation is structured in two tranches. On one hand, Digi will issue 26.8 million new shares, equivalent to about €150 million. Of these proceeds, approximately €134 million will be allocated to finance growth initiatives, such as the deployment of fibre optic to the home (FTTH) and the expansion of its mobile network, both through network sharing (RAN sharing) and with its own infrastructure. The company assures that it will maintain a prudent level of indebtedness.
On the other hand, the sole shareholder of Digi Spain, Digi Romania, will sell 24.5 million existing shares, for an approximate value of €137 million. In total, the initial offer amounts to 51.3 million titles, with a combined value of about €287 million.
Additionally, a 15% over-allotment option has been established on the secondary tranche, which would allow for the placement of up to 7.695 million additional shares within 30 calendar days following the start of trading. If this option is exercised, the maximum size of the offer would reach €330 million, with a total of 58.995 million shares.
€100 million commitment from Grupo Mayoral and lock-up agreements
The operation has significant backing. Global Portfolio Investments, the investment vehicle of the Domínguez de la Maza family (owners of Grupo Mayoral), has committed to invest €100 million in the offer. This binding commitment reinforces confidence in Digi's project in the Spanish market.
Furthermore, the company, the selling shareholder, and certain members of senior management have signed lock-up agreements with the underwriting entities. The company and Digi Romania commit not to sell shares for 180 days from admission, while the management team will do so for 360 days, subject to the usual market exceptions.
The syndicate of placing banks is led by Barclays Bank Ireland, UBS Europe, and Banco Santander as global coordinators. BNP Paribas and Citigroup act as senior joint bookrunners, while BBVA, CaixaBank, and ING are co-bookrunners. Rothschild & Co serves as independent financial advisor to Digi Spain, and the law firms Uría Menéndez and Weil, Gotshal & Manges provide legal advice.
For interested investors, Digi's IPO represents an opportunity to enter a rapidly expanding telecom in Spain, with its own fibre network and a low-cost business model. However, it will be necessary to wait for the CNMV to give the final approval to know the exact dates of the offer. The company has already announced that the prospectus will include all details and the planned schedule.
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