PE-backed Euskaltel valued at €1.2bn in IPO

The listing comprises 86 million shares, and includes the take-up of a greenshoe option, with Investindustrial and Trilantic making a full exit. Bilbao-based financial institution Kutxabank will retain a 30.1% stake in Euskaltel.

The company announced its intention to float in early June, with the offering consisting entirely of existing shares.

The IPO was four times subscribed at the allocated price, unquote" understands.

The business will look to continue to expand its infrastructure following the flotation, specifically targeting ADSL customers who are yet to upgrade to fibre optic broadband services.

June has been an active month for Investindustrial, with the GP also acquiring a majority stake in B&B Italia, a furniture designer for the residential, retail and corporate markets.

Euskaltel shares will start trading on the Madrid, Barcelona, Bilbao and Valencia stock exchanges on 1 July under the 'EKT' ticker.

JP Morgan Securities and UBS acted as joint global coordinators and joint bookrunners in the process. 

Previous funding
Investindustrial and Trilantic acquired a 48% stake in the business via the International Cable Holdings newco in October 2012, a deal that included an equity investment of more than €200m. Previous owners Iberdrola and Kutxabank remain invested in the company.

Company
Founded in 1995 and based in the Basque region, Euskaltel is a telecommunications business providing fixed-line, broadband, mobile and pay-TV services to consumers and corporates.

Euskaltel generated a turnover of €321m in 2014 with adjusted EBITDA of €156m. So-called triple- and quadruple-play offerings, where the company provides multiple services on a single contract, account for 57.6% of its customer base.

Advisers
Company – Rothschild (Corporate finance).

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• Topics
• Exits
• Southern Europe
• Technology
• Spain
• Investindustrial
• Trilantic Capital Partners (previously LBMB)
• IPO
• Unq2015July