Yahoo Movies Vodafone sets price of its Vantage Towers division’s float at up e11.4 billion- e14.7 billion
Vodafone today set a valuation on its Vantage Towersbusiness of e11.4 billion to e14.7 billion as it prepares to float the company on the Germanstock market.
The mobile phones giant has been gauging invetors’ interest in the business in recent weeks and today set the price range for those who commit to buying shares at e22.5-29 a share.
Two major investors have already signed up to invest e500 million and e450 million respectively. They are Digital Colony, a digital infrastructure investor, and Singapore equity fund RRJ.
The first day of trading will be around 18 March and investors are allowed to start submitting orders today.
Vodafone is looking to raise proceeds of e2 billion from the float, which is being pitched by bankers as a way for investors to play the expected rise of 5G and digitisation across Europe.
Covid’s impact on accelerating the work from home phenomenon has highlighted the need for digital connectivity, but the float comes just as valuation jitters are beginning to sweep Europe from the US.
Concerns about future higher interest rates have hit technology valuations, although Vantage will be keen to tout itself as critical infrastructure rather than cutting edge tech. Essentially, its growth lies in building more masts and allowing more companies to bolt their antennas onto them.
Currently, Vantage has 82,000 masts in 10 countries across the UK and Europe, with the biggest share being in Germany, hence the Frankfurt stock listing.
Few major banks are not on the IPO ticket, which will inevitably spark concerns about how independent any advice will be to potential investors. Vodafone is using Bank of America, Morgan Stanley and UBS as joint global coordinators and Barclays, Berenberg, BNP Paribas, Deutsche Bank, Goldman Sachs and Jefferies as joint bookrunners.
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