Digi Communications' Spanish subsidiary, Digi Spain, is moving ahead with its initial public offering (IPO) plans in Spain, intending to raise between €150 million and €200 million (approximately $160 million to $210 million) through a public subscription offer of new shares. This capital injection is crucial for financing the Spanish unit’s growth, as it has been spun off from the parent group to facilitate better access to capital and debt markets. The IPO might also include a public sale of existing shares held by the parent company, with the total capital raise potentially reaching €300 million ($320 million).
The funds from the capital increase will support Digi Spain’s ambitious investment strategy, which includes an estimated €400 million ($426 million) investment in the current year. Looking ahead, the company projects recurring investments below 10% in infrastructure from 2027 onwards, alongside significant growth investments of €850 million to €900 million ($905 million to $958 million) between 2027 and 2029, with approximately half dedicated to fiber optic networks. Despite currently burning cash, with annualized EBITDA around €200 million ($213 million), Digi aims to reverse this trend by 2029 or 2030.
Digi Spain reported revenues of €929 million ($990 million) in 2025, a 19% increase year-over-year, and an adjusted EBITDA of €175 million ($186 million), up 15% from 2024. The EBITDA margin reached 21.6% in the second half of 2025, coinciding with its mobile network deployment. The company’s leverage stood at 2.8 times adjusted EBITDA by the end of 2025, down from 3.7 times in 2023. Digi has dismissed any possibility of selling its Spanish unit, with CEO Serghei Bulgac stating, "There is no reason to sell," in response to inquiries about potential acquisition interest from Telefónica.
Barclays, Santander, and UBS will lead the syndicate of banks as global coordinators for the IPO, with Rothschild acting as financial advisor. BNP Paribas and Citi will serve as joint bookrunners. Legal advice for Digi is provided by Uría Menéndez, while Linklaters supports the financial entities. Digi is also considering including a segment for retail investors in the IPO, and despite global market volatility, particularly from the Middle East crisis, the company is maintaining its plans to go public in Spain, with a reactivated timeline possibly aiming for July.
