Romanian telecommunications group Digi Communications (BVB: DIGI) is seeking to raise at least €287mn through the initial public offering (IPO) of its Spanish subsidiary, Digi Spain Telecom, according to documentation released to investors.

The offering comprises a combination of newly issued shares and existing shares, together with an over-allotment option granted to the global coordinator.

Following the IPO, the shares are expected to be admitted to trading on the Barcelona, Bilbao, Madrid and Valencia stock exchanges through Spain's Mercado Continuo trading platform, subject to market conditions and approval of the prospectus by the Spanish Securities Market Commission.

Digi Spain Telecom, currently wholly owned by Digi Romania (in turn, owned by Netherlands-based Digi Communication), has 291.2mn shares outstanding before the offering. The company plans to issue 26.8mn new shares, representing 8.4% of the post-IPO share capital, while Digi Romania will sell 24.5mn existing shares. An additional 7.7mn existing shares may be sold if the over-allotment option is exercised.

Based on the indicative offer price of €5.60 per share, Digi Spain would be valued at approximately €1.63bn before IPO. The newly issued shares would raise €150mn for the Spanish subsidiary, while the sale of existing shares would generate between €137mn and €180mn for Digi Romania, depending on the exercise of the over-allotment option.

The transaction would result in new investors holding between 16.1% and 18.5% of Digi Spain Telecom.

Digi Communications, the parent company listed on the Bucharest Stock Exchange, currently has a market capitalisation of RON17.65bn (€3.37bn), with its share price having risen 137% over the past 12 months.

Digi Spain expects revenues of €1.04bn-1.085bn in 2026, representing growth of 11.9%-16.8% from the €929.2mn reported in 2025, according to forecasts approved by its board on July 7.

The company projects an adjusted EBITDA margin of around 20% in 2026, reflecting the first full year in which it operates as a mobile network operator following its transition in 2025 under a national roaming and spectrum-sharing agreement with Telefónica Móviles.

Over the medium term, Digi Spain aims to increase its adjusted EBITDA margin to above 30%, from 18.9% in 2025.

Digi has become one of Spain's fastest-growing telecom operators by offering low-cost fibre and mobile services, including a 10 Gbps symmetrical fibre network. The company generated annual revenues of around €1bn in the Spanish market in 2025.