Digi Spain debuts with 7% surge then closes down 8% on mixed first day

Digi Spain Telecom made its debut on the Madrid Stock Exchange on Thursday, initially surging 7% to €6 per share before closing at €5.15, an 8% decline from the IPO price of €5.60 Source: El País, El Español. This made it the worst debut since Talgo in 2015, according to El País. The mixed performance came despite strong demand, with the offering oversubscribed multiple times.

Investor demand and structure

The IPO was exclusively for institutional investors, with over 50 funds participating Source: La República, ABC. The anchor investor was Global Portfolio Investments, controlled by the Domínguez de la Maza family (owners of Mayoral), committing €100 million Source: El Confidencial. The company placed 20% of its capital, with the Romanian parent retaining 80%. CEO Marius Varzaru stated that the priority was a successful placement rather than maximizing price, and that retail investors were excluded due to complexity Source: Infobae, El Mundo.

Use of proceeds and outlook

The operation raised €287 million, including a €150 million capital increase and €137 million from existing shares sold by the parent. Net proceeds of approximately €134 million will fund expansion of fiber and mobile networks, with €2 billion in planned investments by 2030 Source: ABC, El Confidencial. No dividends are expected before 2030. The company may sell an additional 5% stake within one to two years to increase free-float, aiming for 25% Source: Infobae, El Mundo.