Inwit Shares Surge After Telecom Italia’s IPO of Towers Unit

Infrastrutture Wireless Italiane SpA rose more than 9 percent in its Milan trading debut, giving Telecom Italia SpA’s towers unit a market value of about 2.4 billion euros ($2.7 billion) after its initial public offering.

The stock opened Monday at 3.90 euros, up from the IPO price of 3.65 euros, and advanced as much as 9.3 percent to 3.99 euros as of 9:43 a.m. Telecom Italia offered a 40 percent stake in Inwit, which includes the so-called greenshoe option that allows them to increase the number of shares sold.

Italy’s biggest telephone company raised a gross 875.3 million euros ($995 million) from the IPO, excluding commissions and expenses.

Emanuele Isella, an analyst at Fidentiis Equities, said in a research note last week that the stock may rise because of the company’s “higher M&A appeal, stronger organic growth potential, higher Ebitda margin and cash generation ability,” Emanuele Isella.

Inwit Chief Executive Officer Oscar Cicchetti told reporters today at the Italian Exchange that he expected more consolidation in the towers industry.

Telecom Italia will use part of the Inwit IPO proceeds to cut its debt, Chief Executive Officer Marco Patuano said earlier this month. The carrier’s stock was up 1.4 percent to 1.18 euros at 9:31 a.m. in Milan.

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