Tele Columbus IPO prices at mid-point
Tele Columbus’ initial public offering will see the German cableco’s shares sold for €10 apiece, which falls in the middle of its previously indicated range of €8 to €12.
Tele Columbus said it expects to see proceeds from the listing of…
Tele Columbus’ initial public offering will see the German cableco’s shares sold for €10 apiece, which falls in the middle of its previously indicated range of €8 to €12.
Tele Columbus said it expects to see proceeds from the listing of €333m (US$387m), or €367m (US$427m) if the greenshoe is exercised, while the rest of the proceeds will go to the company’s shareholders.
On 13 January, the operator indicated it planned to offer up to 56.5 million shares split between 37.5 million new shares, 15.3 million existing shares held by a Luxembourg holdco, and a greenshoe of a further 3.75 million new shares.
Tele Columbus has now said it will place 33.3 million new shares, 14.4 million shares held by existing shareholders, and a potential 3.3 million more new shares as an over-allotment option.
The cableco said it would only have issued the maximum number of shares if its stock had priced at the bottom of the range.
Ronny Verhelst, Tele Columbus’ CEO, said he was delighted with the demand for the offering.
“The response from investors has been very positive and confirms the attractiveness of our business model,” he said.
“The access to the capital market going forward increases the company’s financial flexibility to significantly strengthen our market position.”
Tele Columbus said the free float resulting from the IPO will amount to more than 50% of the operator, which will trade as TC1 on the Frankfurt Stock Exchange from 23 January 2015.
Goldman Sachs and JP Morgan are managing the listing. BofA Merrill Lynch and Berenberg are also acting as bookrunners, while Rothschild is working as a financial adviser.
Tele Columbus is the third-largest cable operator in Germany behind KDG and Kabel BW. It is owned by several hedge and credit funds and posted revenues of €159.3m in Q3 2014, and EBITDA of €72.9m.
Tele Columbus plans to continue investing to further migrate networks from third-party level 3 operators and expand its customer base, which includes large and small housing associations.
