Digi eyes imminent ipo amid turbulent market

Romanian telecom operator DIGI is moving forward with plans to go public, despite a turbulent global market.

Financial growth and market expansion

DIGI has seen a 19% increase in revenue year-over-year, with its user base now surpassing 10.8 million. The company is expanding its own network to reduce reliance on Telefónica's infrastructure.

However, DIGI's low-cost pricing strategy, which has helped attract customers in its battle with Vodafone, may not be enough to secure the necessary funding.

Ipo plans face uncertainty

DIGI's CEO Marius Varzaru confirmed the company is waiting for market conditions to improve before proceeding with its IPO. The proposed valuation for DIGI is between €2 billion and €2.4 billion, although this could be lower due to the ongoing conflict in the Middle East.

With the global market still recovering from a historic downturn, and Bitcoin and gold prices also plummeting, DIGI faces increased pressure to succeed in its IPO.

Despite rumors of a potential delay, DIGI is still working on its IPO plans. The company has completed the process of fully financial independence for its Spanish subsidiary from its Romanian parent, according to Carlos Sanz Tejedor, DIGI Spain's CFO.

DIGI is also considering a public offering with a capital increase of between €150 million and €200 million to fund part of its planned investments in the region, which could total €350-400 million over the next few years.

The company is exploring the possibility of selling existing shares (OPV) as well, although this depends on market conditions and investor interest.

If all goes according to plan, DIGI could list on the stock exchange by the end of the month. However, other analysts suggest no final decision has been made, and the ongoing conflict in Iran may still impact the timeline.