Germany’s third largest cable operator Tele Columbus is preparing an initial public offering (IPO) on the Frankfurt stock exchange.

The company intends to list its shares on the regulated market (prime standard) by the end of 2014 subject to market conditions, according to a statement. The IPO will consist of new shares from a capital increase and shares from existing shareholders through a holding company.

Tele Columbus expects the proceeds from the capital increase to amount to at least €300 million. The company intends to use the incoming cash to reduce its current financial debts and to continue its growth strategy, for example through acquisitions.

“We are very excited about the future prospects of Tele Columbus as a public company. The significant growth potential of Tele Columbus is based on one of the best performing cable networks in the German market and a very attractive customer base with significant potential for selling additional products and services beyond cable TV services,” CEO Ronny Verhelst said in Berlin. “This puts us in an excellent position to further grow our business over the coming years in one of Europe’s most attractive cable markets.”

Tele ColumbusMore than half (54%) of the 1.7 million connected households are upgraded for two-way communication required for telephony and internet and supplied by the company’s own signals. Tele Columbus plans to increase the share to 70% in the medium term, thereby reducing dependence on third-party suppliers and increasing profitability.

Goldman Sachs International and J.P. Morgan Securities are acting as joint global coordinators and together with BofA Merrill Lynch and Berenberg as joint bookrunners. Rothschild is a financial advisor to the company.

Tele Columbus which is currently in the hands of its former creditors confirmed in July 2014 that an IPO is under consideration. In September 2014, the company was transformed into a German stock market corporation.

Tele Columbus’ shareholders tried to exit the company last year through a sale to market leader Kabel Deutschland, but this was blocked by the Federal Cartel Office.