BERLIN (Reuters) – Vodafone Group said on Tuesday it would seek to raise up to 2.8 billion euros ($3.32 billion) in proceeds by floating infrastructure unit Vantage Towers in Europe’s largest initial public offering of 2021.
The UK-based operator set the price range for the flotation of Vantage Towers on the Frankfurt Stock Exchange at 22.50 to 29 euros per share, implying a total market capitalisation of up to 14.7 billion euros.
That would top the valuations of a European IPO crop this year that has featured Polish e-commerce firm InPost, German used-car trading platform AUTO1 and British footwear brand Dr. Martens.
The deal would be the largest European telecoms IPO since Belgacom in 2014, and Germany’s largest listing since Knorr Bremse in 2018, both of which raised $4.4 billion, Refinitiv data showed.
The base offer size is 2 billion euros, but there is flexibility to increase it to 2.8 billion euros through an “upsize” option and an over-allotment option for lead managers on the deal, Vodafone said.
The free float on the base offer size would be 19.1%, according to a bookrunner, rising to 24.6% should the increased offer be placed.
Vodafone added that infrastructure investor and operator Digital Colony and Singapore-based global equity fund RRJ had agreed to be cornerstone investors and buy a total of 950 million euros in shares.
The offer period is due to end on or around March 17, with the first day of trading the following day.
Bank of America, Morgan Stanley and UBS are joint global coordinators and joint bookrunners on the deal. Barclays, Berenberg, BNP Paribas, Deutsche Bank, Goldman Sachs and Jefferies are joint bookrunners.
($1 = 0.8435 euros)
(Reporting by Riham Alkousaa and Douglas Busvine, editing by Thomas Escritt and Jason Neely)