Shares in Telecom Italia(TI)’s tower spin-off Inwit rose 11.5% at the end of the first day of trading, from an initial price of €3.65 per share, valuing the company at €2.4bn.Commenting on the results, Inwit CEO Oscar Cicchetti said: “We are…
Shares in Telecom Italia(TI)’s tower spin-off Inwit rose 11.5% at the end of the first day of trading, from an initial price of €3.65 per share, valuing the company at €2.4bn.
Commenting on the results, Inwit CEO Oscar Cicchetti said: “We are pleased. Inwit benefits from a solid industrial history and I think that the market appreciated such history. Our shareholders include large Italian and foreign investors as well as many small investors that positively evaluated our history and plans.”
He added that the towerco has the right characteristics to take part in the sector’s future consolidation process.
Earlier this month, TI CEO Marco Patuano did not dismiss a potential deal with Abertis’ tower unit Cellnex Telecom, which debuted on the Madrid stock exchange in May after acquiring 7,377 towers from Italian cellco Wind Telecomunicazioni, or with state-owned broadcasting towerco Rai Way.
TI will raise a minimum of €779.8m in net proceeds, excluding a 10% overallotment option.
The funds will be used to reduce Telecom Italia’s debt burden and speed up nationwide fibre deployment for both fixed and mobile applications, and also to pursue potential M&A opportunities.
The telco recently said it would increase its FTTH investment for 40 Italian cities from an initial €500m to €650-700m, in line with the government’s recently launched high-speed broadband plan.
Banca IMI, Deutsche Bank and Mediobanca are acting as global joint coordinators and joint bookrunners on the IPO, while UBS is serving as joint bookrunner.
