Spanish Tower Operator Cellnex Valued at $3.6 Billion in IPO

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Phone-tower operator Cellnex Telecom SAU got a valuation of about 3.24 billion euros ($3.6 billion) in its initial public offering, as owner Abertis Infraestructuras SA seeks to take advantage of a rebound in Spain’s equity market.

Toll-road company Abertis is selling a stake of as much as 66 percent in Cellnex for 14 euros a share, Cellnex said in a regulatory filing. The maximum stake assumes the exercise of a so-called over-allotment option. Cellnex said last month the shares would be priced between 12 euros and 14 euros.

This week, Abertis boosted the size of the stake it’s selling to 60 percent to 66 percent, from a range of 55 percent to 60.5 percent planned previously. Improving investor appetite for Spanish equity has made the country the second most-active IPO market in Europe this year, after the U.K, according to data compiled by Bloomberg.

Four IPOs took place in Spain this year before Cellnex, led by airport operator AENA SA’s 4.8 billion-euro offering, according to data compiled by Bloomberg. Last year, Spanish companies raised $6.5 billion in IPOs.

Telecom Italia SpA is planning an IPO of its Italian towers. Barcelona-based Abertis operates towers in Spain and Italy.

Cellnex is scheduled to start trading on Thursday. Abertis shares fell 2.4 percent to 16.22 euros in Madrid on Tuesday.

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