Vodafone’s Vantage Towers shares surged as much as 4.8% on Thursday in Germany’s largest stock market debut since 2018. According to Reuters, Vantage benefited from the strong investor appetite for infrastructure assets with stable returns.
Vantage shares were offering at 24 euros, which was towards the lower end of the 22.5 to 29 euro marketing range. If the Vantage Towers over-allotment option is fully exercised, Vodafone would still hold 81% of the towers company.
Vodafone will use the proceeds of the initial public offering to cut its debt, which totals about 69 billion euros.
If a 300 million euro over-allotment option is exercised, Vodafone will earn 2.3 billion euros from the IPO, which valued Vantage Towers at 12.1 billion euros.
Vodafone CEO Nick Read said the IPO unlocks value for the company’s shareholders and demonstrates the value of its towers assets in a 5G world.
Telecom towers are becoming a target of big deals in Europe as the roll-out of next-generation 5G technology takes shape.
Many telecoms firms are looking to spin off tower businesses, or launch joint ventures with independent companies, as a way to keep a chunk of potential future growth.Vantage Towers stock is currently gaining. VTWR is up 2.40%.
