Germany’s third-largest cable operator Tele Columbus has initiated its IPO: The price range for the offered shares has been set at €8.00 to €12.00 per share.
The offer period will start on 13 January 2015 and is expected to end on 21 January 2015. The admission to trading on the regulated market (Prime Standard) of the Frankfurt stock exchange is planned for 23 January 2015.
Tele Columbus will issue both existing shares as well as new shares as part of a capital increase. The offering size amounts to €300 million in new shares and €147 million in existing shares if the shares are placed at the mid-point of the price range, thus totaling €447 million (€477 million if the over-allotment option is exercised in full).
The company which serves around 1.7 million households wants to use the proceeds from the flotation to reduce its debts and to increase its scope for growth.
“Over the medium term, we want to raise the number of products per customer from today’s 1.43 to 1.7, grow the monthly average revenue per customer from €14.0 to €17.0 and increase the share of upgraded households supplied with own signals from 54% to 70%,” said Ronny Verhelst, CEO of Tele Columbus. “This is intended to further strengthen the position of Tele Columbus as the number three operator in the German cable market.”