Digi to Launch IPO for Spanish Unit

Digi Communications said on June 29 that it will move ahead with an initial public offering for Digi Spain Telecom, ending months of speculation around a Spanish listing for its local unit.

The company said the offering will combine newly issued shares with a sale of existing shares held by Digi Romania. Digi Spain expects the primary portion of the transaction to raise about €136 million in net proceeds.

Digi Romania said it will retain at least 75% ownership of Digi Spain after the deal, allowing the parent to raise capital while keeping control of the business.

Global Portfolio Investments, an investor linked to the Mayoral family, has committed €100 million to the transaction under conditions that point to a pre-money valuation of as much as €1.7 billion for Digi Spain.

IPO structure

The company said the IPO will include €150 million of new shares alongside secondary shares sold by the parent company. Spanish coverage said the total placement could amount to as much as 25% of the capital.

Digi Spain is expected to list on Spanish stock exchanges, with trading timing dependent on market conditions and approval of the prospectus by Spain’s securities regulator, the CNMV.

The company’s disclosure adds a new listed telecom name to Spanish markets if the transaction proceeds as planned.

Why Digi is tapping the market

Digi has said the listing is meant to support growth projects and infrastructure investment in Spain.

That need comes as Digi Spain remains a meaningful player in the market. The unit is the fourth-largest mobile operator in Spain and generated €929 million in revenue last year.

The structure also gives Digi Communications a way to fund expansion without giving up a majority stake in the Spanish business.

From delay to launch

The move follows an earlier attempt that was delayed in May when market conditions were less favorable.

On June 25, Spanish press reported that Digi was considering reactivating the listing plan in July to raise about €300 million. On June 29, Cinco Días reported that Digi Spain was preparing to go public in Madrid, Barcelona, Bilbao and Valencia with up to 25% of capital on offer.

Later that day, The Wall Street Journal reported that Digi would launch the IPO, confirming the plan and adding detail on the primary and secondary share split.

What happens next

The immediate next step is filing and securing approval for the prospectus with the CNMV.

After that, Digi will need to complete bookbuilding and confirm pricing terms before trading can begin.

Investors will watch whether the anchor commitment remains in place and whether the final valuation stays near the reported €1.7 billion ceiling.

The launch date will still depend on market conditions, so the company has confirmed the IPO plan but not yet the final timing for the listing.