Reported by the Consejeros Editorial Team
Digi España was listed on the stock exchange yesterday via an initial listing auction. The transaction, aimed exclusively at institutional investors, consists of a rights issue of €150 million (€134 million net of fees and employee share options) combined with a public offering of €137 million by DIGI Romania (the parent company). The latter will have the option to sell additional shares worth €43 million.The placement price was €5.60 per share, equivalent to a market capitalisation of €1,662 million (which by no means implies that the shares will necessarily trade at that price; rather, this will be determined at the auction), following the capital increase. Digi Romania will retain at least 80 per cent.
Bankinter’s analysts are not issuing an opinion at this stage, but will wait until more public information is available when the company publishes its quarterly results. In any case, they raise the following two considerations: Reduced market capitalisation, with a free float that we estimate to be in the range of 16%–20% (around €200–250 million). Furthermore, they preliminarily estimate that its IPO is being priced at a forward P/E ratio of around 12x, similar to the average for the listed European telecoms sector; consequently, it does not appear to offer a significant discount as an attractive feature.
The telecoms operator has placed approximately 17.3% of its capital, raising around €500 million. The company’s stock market debut has been backed by investors such as the investment company owned by the Domínguez de la Maza family (Grupo Mayoral), which committed to investing €100 million.
