Digi Spain went public today through a listing auction. The operation, aimed exclusively at institutional investors, consists of a capital increase of €150 million (€134 million net of commissions and employee variable) in combination with an IPO of €137 million by DIGI Romania (parent company). They will have the option to sell additional shares worth €43 million. The placement price has been €5.60/share, equivalent to a market capitalisation of €1.662 billion (which does not necessarily mean that it will trade at that price, as it will be decided in the auction), post-capital increase. Digi Romania will retain at least 80%.
Bankinter analysts are not issuing an opinion for now, but will wait for more public information when it publishes its quarterly results. In any case, they raise the following 2 considerations: Reduced liquidity value, with a free float or floating capital estimated in the range of 16%/20% (around €200/250 million). They also preliminarily estimate that its listing takes place at a PER of 27e c.12x, similar to the average of the already listed European telecom sector, so it does not seem to offer a relevant discount as an attraction.
The telecommunications 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 firm of the Domínguez de la Maza family (Grupo Mayoral), which committed to invest €100 million.
