April 27 (SeeNews) - Netherlands-based telecoms company Digi Communications, the majority owner of Romanian company RCS&RDS, said on Thursday it will launch on Friday an initial public offering (IPO) on the Bucharest bourse, BVB, hoping to raise up to 1.22 billion lei ($293 million/269 million euro) through the sale of a 25% stake.
Subscription for the shares will run from April 28 to May 10 and trading on the Bucharest Stock Exchange is estimated to begin around May 16, Digi said in the listing prospectus published on its website.
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The company will offer investors 21.74 million shares with a nominal value between 38 lei and 56 lei. Also, it is prepared to offer shareholders an option for an additional 2.17 million shares.
Citigroup and Deutsche Bank are acting as the joint global co-ordinators, together with BT Capital Partners, Raiffeisen Bank, Societe Generale/BRD – Groupe Societe Generale and Wood & Company Financial Services, as joint bookrunners on the offering.
The IPO will comprise an offer of class B ordinary shares by existing shareholders. The company also has class A ordinary shares which are issued but which are not part of the offer and which will not be admitted to trading.
The intention of listing was announced on April 11, when the company's shareholders also decided to change the name of the company to Digi Communications N.V from Cable Communications Systems (CCS). RCS&RDS CEO Serghei Bulgac took over as CEO at Digi Communications N.V.
RCS&RDS, founded by Romanian businessman Zoltan Teszari, comprises two companies - Romanian Cable Systems (RCS) founded in 1994 and Romanian Data Systems (RDS) founded in 1998.
Its parent company, Cable Communication Systems, now Digi Communications N.V, indirectly operates telecoms groups in Hungary, Spain and Italy through RCS&RDS.
In 2016, Digi Communications N.V generated 842.8 million euro ($894 million) of revenue and adjusted EBITDA and adjusted EBITDA margins of 263.3 million euro and 31.2%, respectively, representing a compound annual growth rate (CAGR) for continuing operations of 8% from 2014 to 2016.
On Wednesday, Standard & Poor's Ratings Services upgraded RCS & RDS and Digi Communications long-term corporate ratings to 'BB-' from 'B+', with stable outlooks.
(1 euro=4.5289 lei)