Euskaltel plans IPO in 2015
Euskaltel is to proceed with an initial public offering (IPO) on the Spanish stock exchange in late 2015.
The IPO will consist of a secondary offering of the company’s existing ordinary shares. The company said that its present shareholders from Kutxabank, International Cable and Iberdrola will sell existing shares in the IPO.
Fernando Ojeda, director general of Euskaltel, said that the IPO will underpin the execution of the company’s strategy to maximise customer lifetime value by leveraging its leadership positions in the Basque Country.
“We are excited about our growth opportunities and believe our strong cash flow profile will enable us to pursue an attractive distribution policy,” he added.
Euskaltel claims to be the leading broadband and pay TV provider in the Basque Country, where its network reaches 85% of households. In 2014, the company posted €321.2 million in revenue.
“We have successfully weathered a challenging macro and industry environment in the last few years,” said Alberto Garcia Erauzkin, chairman of Euskaltel.
“We believe that as a result of our market leading positions in the Basque Country, strong brand and fully invested network, we are now uniquely positioned to take advantage of the current inflexion point in the market and drive Euskaltel’s growth forward.”