May 11 (SeeNews) - Digi Communications, the majority owner of Romanian company RCS&RDS, said on Thursday it has set the final share price at 40 lei in an initial public offering (IPO) of a 25.6% stake on the Bucharest Stock Exchange (BVB).
The Netherlands-based telecommunications company has offered to investors 23.91 million shares, which are expected to start trading on or about May 16 on the BVB, Digi said in a press release.
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The final offer price for institutional investors was set at 40 lei, while for retail investors the price was set between 37.2 lei and 38.8 lei, a statement submitted to the BVB by Digi on Thursday showed.
The final share price takes the IPO to a BVB record of 956.7 mln lei (210 mln euro) and a market capitalization of 3.6 billion lei for Digi.
Digi launched the IPO on the BVB on April 28, hoping to raise up to 1.22 billion lei.
"We have been very pleased with the strong response from retail and institutional investors since we announced our Intention to Float on the Bucharest Stock Exchange. This IPO is an important step in DIGI’s development, allowing investors to gain access to an attractive industry leader, with stable structural growth," CEO Serghei Bulgac said.
"We believe the strong support from investors is testament to strength of our existing business and future growth prospects. We look forward to our anticipated listing on the 16th May,” Bulgac added.
The intention of listing was announced on April 11, when the shareholders also decided to change the name of the company to Digi Communications N.V from Cable Communications Systems (CCS). Serghei Bulgac, CEO of RCS&RDS, took over as CEO at Digi Communications N.V.
On Wednesday, Digi said that it has been notified of a corruption probe launched against it by Romania's anti-graft body DNA. Prosecutors are investigating a former Romanian professional football league chief who is suspected of receiving a bribe in exchange of granting Digi Communications the exclusive television rights over some matches.
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 telecommunications 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.
At the end of April, Standard & Poor's Ratings Services upgraded RCS & RDS and Digi Communications long-term corporate ratings to 'BB-' from 'B+', with stable outlooks.
(1 euro=4.5505 lei)