Digi readies ipo amid market volatility, faces high churn rate

Romanian telecom operator DIGI is pressing ahead with its planned initial public offering (IPO) to secure much-needed funding for further expansion, despite the volatile market conditions.

Digi's ipo timing imperiled by ukraine war and market instability

The company, which has grown its customer base to over 10.8 million, faces a tight deadline to decide on its listing as the war in Ukraine and global economic uncertainty intensify.

Analysts warn that DIGI cannot afford to wait too long, as the value of its IPO could plummet if it delays too long in the face of market volatility, which has already hit some Spanish companies hard.

According to reports, DIGI's valuation could range from €2-2.4 billion. However, this estimate may be revised downwards in light of the ongoing conflict in Ukraine, which has already disrupted global supply chains and financial markets.

Digi's high churn rate looms large in ipo decision

Despite its rapid growth, DIGI faces a significant challenge in the form of a high customer churn rate of 15.8%, up 3% from 2024. This suggests that the company may struggle to retain customers over the long term, which could be a major concern for investors.

Industry experts argue that such high churn rates could spell trouble for DIGI's IPO, as investors tend to favor more stable, predictable operations.