Romanian telecom operator Digi Communications (BVB: DIGI) wants to raise at least EUR 287 million by listing the shares of its Spanish subsidiary, according to a note to investors. The public offering, which may reach EUR 330 million, includes the sale of new shares and existing shares plus an over-allocation option granted to the global coordinator.

Following the IPO, the shares are anticipated to be admitted to trading on the Barcelona, Bilbao, Madrid, and Valencia Stock Exchanges for trading through the Automated Quotation System or “Mercado Continuo” of the Spanish Stock Exchanges.

The decision to proceed and final timing for the IPO and Admission are subject to, among other factors, market conditions and the approval of the IPO prospectus by the Spanish Securities Market Commission.

Digi is widely known in Spain for rolling out ultra-fast connectivity options, including its advanced 10 Gbps symmetrical fibre optic network. The operator has historically captured market share through aggressive pricing, offering flexible fibre-and-mobile contract bundles with transparent, fixed-pricing billing structures. Its annual revenues currently reach around EUR 1 billion.

Digi Communication, the owner of Digi Romania, has a market capitalisation of RON 17.65 billion (EUR 3.37 billion) after the price of its shares rose by 137% y/y.

IPO details. Digi Spain Telecom, fully owned by Digi Romania, holds 291.2 million shares before the IPO. It will issue 26.8 million new shares (8.4% of the post-IPO number of shares) and sell 24.5 million of existing shares plus a 7.7 million over-allocation option (existing shares). For the price per share set at EUR 5.60, the current capitalisation would be EUR 1.63 billion. The new shares would bring EUR 150 million to the Spanish subsidiary, while the sale of existing shares would bring EUR 137 million to EUR 180 million to Digi Romania. 

The IPO would bring 16.1% to 18.5% of the shares of Digi Spain Telecom, depending on the exercise of the over-allocation option, in the hands of new shareholders.

Digi Spain Telecom financials. Digi Spain Telecom expects revenues of between EUR 1.04 billion and EUR 1.085 billion for 2026, an increase of 11.9% to 16.8% compared to the EUR 929.2 million reported in 2025, according to the forecast approved by the board of directors on July 7 and included in the prospectus for listing on the Spanish stock exchanges. 

The company estimates an adjusted EBITDA margin of around twenty percent for this year, taking into account that 2026 is the first full year in which Digi Spain operates as a mobile network operator itself, after becoming an MNO in 2025 through a national roaming and spectrum sharing agreement with Telefónica Móviles.

The most ambitious target is the adjusted EBITDA margin, which the company aims to almost double, from 18.9% in 2025 to over 30% in the medium term, with a stronger increase at the beginning than towards the end of the period.

iulian@romania-insider.com

(Photo source: the company)