Digi's equity offer hinges on market volatility amidst iran conflict

Romanian telecom operator DIGI is poised for a potential initial public offering (IPO), but its plans are being threatened by the ongoing Iran conflict and resulting market volatility.

Digi seeks to break free from dependence on telefónica's infrastructure

Despite reporting a 19% revenue growth year-over-year, DIGI needs financing to further expand its network and reduce its reliance on Telefónica's infrastructure. A low-cost pricing strategy has helped attract new customers in the company's battle against Vodafone, but it may not be enough.

DIGI's planned IPO, expected to be worth between €2 billion and €2.4 billion, is now under scrutiny as global markets reel from the impact of the Iran crisis. The conflict has already hurt DIGI's finances, with CEO Marius Varzaru confirming that the company is waiting for events to unfold before deciding on a timeline for its IPO.

If the market conditions improve, DIGI could exit the IPO pipeline as early as the end of this month, according to some analysts. However, others suggest that the decision remains uncertain, with no concrete plans in place.

In the meantime, DIGI is focusing on strengthening its financial position, having recently completed the process to fully separate its Spanish subsidiary from its Romanian parent company. The company is also exploring the possibility of a public share offering (OPS) with a capital increase of €150-200 million to fund part of its planned €350-400 million investments in Spain over the next few years.