The telecom operator Digi Spain has taken the final step toward its initial public offering (IPO) after receiving approval from the National Securities Market Commission (CNMV) for its IPO prospectus.

The offering will allow the Spanish subsidiary of the Digi Group to raise up to €330 million ($376m) including the over-allotment option, and represents one of the largest IPOs in Spain’s telecommunications sector in recent years.

Digi’s IPO values the company at around €1.66 billion ($1.9bn).

The placement process began on July 10 with the opening of the order book, and the shares are scheduled to begin trading on the stock exchanges in Madrid, Barcelona, Bilbao, and Valencia on July 16.

The offering is priced at €5.60 ($6.39) per share and combines a capital increase with the sale of shares by the Romanian parent company, Digi Romania.

Growth ambitions in Spain

The IPO includes the issuance of 26.8 million new shares, through which Digi Spain expects to raise approximately €150 million ($171m) to finance its growth. In addition, there is a secondary offering of 24.5 million shares owned by Digi Romania, valued at about €137 million ($156m).

Furthermore, the parent company has granted the global coordinators an over-allotment option of up to 7.7 million shares, which would bring the total amount of the transaction to approximately €330 million ($376m).

The company stated that the funds raised through the capital increase will be used to support its growth strategy in the Spanish market, where it continues to expand its telecommunications infrastructure and customer base.

The IPO coincides with a phase of strong expansion for Digi in Spain. In recent years, the operator has accelerated the deployment of its own fiber-optic networks and has strengthened its presence in the mobile market following the acquisition of assets resulting from the merger between Orange and MásMóvil.

The company has also increased its investment in network infrastructure to reduce its dependence on third parties and improve the coverage of its converged services—a strategy that has made it one of the fastest-growing operators in the Spanish market.

The IPO comes amid high demand for investment in digital infrastructure. The growth in data traffic, the expansion of fiber-optic networks, and the deployment of new mobile networks are driving operators’ financing needs as they seek to strengthen their capabilities to respond to rising digital consumption and the development of cloud-based and AI-driven services.

With its listing scheduled for July 16, Digi Spain will bring to the Spanish stock market one of the fastest-growing companies in the telecommunications sector, with a profile increasingly focused on developing its own infrastructure.

This piece was automatically translated from DCD’s Spanish site and edited by a member of DCD staff.