Vantage Towers, the European arm of Vodafone concerned with making and operating mobile towers, has announced its intention to float come end of March. The telecom infra aggregator is planning to list up on the Frankfurt Stock Exchange, with a gigantic IPO that can value the same over $16 billion.
Details of the IPO of Vantage Towers
Vantage operators in excess of 80,000 towers in 10 countries and is in contention for the top in each one of them. Vantage Towers is going public in a month and is expected to offer a huge IPO. The IPO is estimated to value the supplier at $16-18 billion. The details are still under the wraps but sources from within the company have ballpark figures. The sources estimate shares worth $3.65 billion will be sold.
The telecom infra maker will file in core earnings of 540 million euros for the financial year ending in March 2021 and that can help us estimate the valuation of the company at the IPO. The firm’s rivals operate at 20-30 times their core earnings. Doing some quick math and we find that Vantage Towers will be valued at somewhere between 10.8 billion and 16.2 billion euros.
The parent company of the infra maker, Vodafone, have said that it is going to be a sale of a “meaningful minority” that will help create a liquid market in the shares. Since there are no new shares on sale, the tower operator will not be benefitting from the sale.