Vodafone plans to raise nearly $5 billion in Vantage Towers IPO in 2021

UK-based Vodafone Group Plc is planning to raise $4.7 billion (4 billion euros) from the initial public offering (IPO) of its European towers unit in 2021.

The telecom giant might list its Vantage Towers unit in Frankfurt in the first quarter of 2021, which could value the unit at 20 billion euros, including debt, Bloomberg reported.

The Vantage Towers stock market debut might be the largest IPO on a European exchange in over three years, the report added.

A representative for Vodafone declined to comment when contacted by Bloomberg. The company intends to use proceeds from any sale to clear some of the group debt, the report said.

The possibility of Vodafone including its stake in Cornerstone Telecommunications Infrastructure, its joint venture with Telefonica, in the listing is being discussed, the report said.

Initial meetings with institutional investors have suggested a strong demand for Vantage shares, sources told the news agency.

Vodafone had in July 2020 announced its plan for a Vantage Towers IPO in 2021. The company made the decision to list Vantage Towers in London rather than Frankfurt due to the higher number of tower assets in the portfolio.

“We are just at the start of the 5G cycle when operators and government are looking to expand coverage,” Vodafone CEO Nick Read said in July, as quoted by Reuters.

“These trends create good growth opportunities for a towers business and Vantage Towers is well positioned across each of its markets to capitalise,” he added. Bloomberg