Vodafone Group has priced the initial public offering (IPO) of its Vantage Towers infrastructure subsidiary at a base offer size of EUR2.0 billion (USD2.4 billion). The offer period commenced today and is expected to run until 17 March, ahead of a planned listing on the Frankfurt Stock Exchange on or around 18 March. The initial price range of EUR22.50 to EUR29.00 per share implies a total market capitalisation for Vantage Towers of EUR11.4 billion to EUR14.7 billion with the final offer price to be determined based on a bookbuilding process. The final offering may be upsized by up to 40% of the base offer size, to EUR2.8 billion, through the exercise of a 25% upsize option and a greenshoe option. The group also announced that infrastructure investor Digital Colony and Singapore-based equity fund RRJ have already agreed to buy, respectively, EUR500 million and EUR450 million of shares at the offer price.
The IPO comprises a public offering in Germany and private placements in certain other jurisdictions. Vodafone is targeting gross proceeds from the base offer of EUR2.0 billion from the sale of up to 88,888,889 shares. Vodafone may increase this offer by up to EUR500 million by placing up to 22,222,222 additional shares with investors in accordance with an upsize option. Finally, Vodafone has made available up to 13,333,333 shares worth up to EUR300 million to cover possible over-allotments, and has granted a greenshoe option to the underwriters to acquire the over-allotment shares at the offer price. Shares in the combined offer will represent 19.1% to 24.6% of Vantage Towers’ outstanding share capital.
Vantage Towers is a tower infrastructure company with approximately 82,000 macro sites across ten European countries.