Telefonica Said to Revive Telxius IPO Plan After Brexit Rout

  • Investor roadshow for IPO could start as early as next week
  • Telefonica may seek Telxius unit listing at end of September

Telefonica SA has revived work on an initial public offering of its Telxius infrastructure unit as the stock market recovers from the impact of Britain’s vote to leave the European Union, according to people with knowledge of the matter.

Spain’s largest phone company has asked banks working on the share sale to add new details to investor presentations, including second-quarter earnings, the people said, asking not to be identified because the deliberations are private.

Banks could start meetings with investors as early as next week, which would let Telefonica carry out the listing in Madrid by the end of September, the people said. The company, which is set to give a final nod to the plans as soon as this week, hasn’t made a final decision about the details of the share sale, they said.

A representative for Madrid-based Telefonica declined to comment.

The IPO could raise as much as 1.5 billion euros ($1.7 billion), giving the business an equity value of as much as 3.5 billion euros, people with knowledge of the matter said in June. The deal could help Telefonica reduce its net financial debt, which grew to 52.6 billion euros at the end of June, up by about 2 billion euros from March 31.

Chief Executive Officer Jose Maria Alvarez-Pallete put plans for a Telxius IPO, as well as a listing for British mobile unit O2, on hold after U.K. voters chose to leave the EU in a June 23 referendum, people familiar with the company’s plans said at the time. The shock Brexit decision caused stock indexes to fall globally.

Still, the FTSE 100 Index has rebounded since the vote and is up about 9.6 percent this year. Spain’s IBEX 35 Index has regained 12 percent since the day after the referendum. Telefonica shares have lost about 12 percent this year.

Telefonica shares rose 1.2 percent to 8.99 euros in Madrid at 1:05 p.m.

(A previous version of this story was corrected to say Telefonica declined to comment.)

Before it's here, it's on the Bloomberg Terminal. LEARN MORE