Telefonica plans to float up to 23.17% of its subsidiary Telefonica Deutschland’s share capital at €5.25 to €6.50 per share, valuing the offering between €1.36bn (US$1.7bn) and €1.69bn (US$211bn).
The offer period for the IPO is set to run…
Telefonica plans to float up to 23.17% of its subsidiary Telefonica Deutschland’s share capital at €5.25 to €6.50 per share, valuing the offering between €1.36bn (US$1.7bn) and €1.69bn (US$211bn).
The offer period for the IPO is set to run from 17 to 29 October, while the listing of shares on the Frankfurt Stock Exchange is scheduled for 30 October, Telefonica’s German unit announced today.
The offering will consist of 225 million registered shares as well as possible over-allotments of up to 33.75 million registered shares. Open to institutional and retail investors in Germany and Luxembourg, there will also be private placements in other jurisdictions.
Spanish parent Telefonica will remain the majority shareholder with a stake of about 76.83%, assuming full exercise of the greenshoe option.
Commenting on the IPO, Telefonica Deutschland CEO Rene Schuster said: “Our strong revenue growth over recent years as well as our internal efficiency enhancement initiatives has enabled us to increase cash flow, which we will use to drive further growth and deliver attractive shareholder returns.”
He added that the company expects its results for the third quarter will show good year-on-year growth in many areas, including the number of post-paid customers.
“Our wireless service revenues will continue to increase, although at a lower rate than in previous quarters, on the back of a particularly strong result in the three months ended 30 September 2011,” he said. “We expect OIBDA to deliver strong growth in line with previous quarters”.
The IPO prospectus has been filed with the German financial markets authority BaFin and the company expects to receive its approval later today. Once it does, the prospectus will be published on the Telefonica Deutschland website. An announcement on the final pricing can also be expected shortly.
JP Morgan and UBS Investment Bank are global coordinators and joint bookrunners for the IPO. Additional bookrunners are BofA Merrill Lynch, BNP Paribas, Citigroup and HSBC. Co-lead managers are Banca IMI, BayernLB, BBVA, Commerzbank, Banco Santander and Societe General.
