Digi Communications announces IPO

Bill Boyle
Published on:

DIGI Communications has announced its intention to float on the Bucharest Stock Exchange

DIGI, a provider of telecoms services in Romania and Hungary, has a diversified portfolio of complementary media and telecommunications services, strong brand recognition amongst Romanian and Hungarian consumers and five core services. These are cable TV, fixed internet and data, mobile telecommunication services, fixed-line telephony and direct to home (DTH) television.

DIGI also offers multiple services to enhance the uptake of its services to its existing customer base and increase customer loyalty.

Serghei Bulgac, CEO of DIGI's largest operating company and the CEO in-waiting of the company, said: “Today marks a historic moment for DIGI Communications and the wider Romanian economy. As one of the leading providers of telecommunications services in Romania and Hungary, our intention to float on the Bucharest Stock Exchange is an exciting opportunity for the Romanian public and will be a proud achievement for us. By investing in DIGI, shareholders will gain access to an attractive industry leading company, with stable structural growth. Investors will benefit from our management team’s expertise and brand recognition in our chosen markets and customer segments. The Board is proud to support this stage of our development and looks forward to working with future shareholders as a publicly listed company.”

DIGI also provides mobile telecommunication services as an MVNO to the large Romanian communities in Spain and Italy. Its fixed fibre-optic networks in Romania and Hungary cover approximately 62% and 24%, respectively, of households in those countries and its 3G and 4G mobile telecommunication services in Romania cover approximately 98% and 37% of the population, respectively.

According to company accounts in 2016, DIGI generated €842.8 million of revenue and adjusted EBITDA and adjusted EBITDA margins of €263.3 million and 31.2%, respectively, representing a CAGR for continuing operations of 8% from 2014 to 2016.

Full details of the offering will be included in the prospectus which is expected to be published in due course by the company following the approval of the prospectus by the Netherlands Authority for the Financial Markets (Stichting Autoriteit Financiële Markten)