Digicel hopes to raise $2.2 billion in IPO

Telecom giant Digicel yesterday indicated that it would raise up to US$2.2 billion in its Initial Public Offering (IPO) on the New York Stock Exchange.

This is based on offering 142 million shares for up to US$16 each, according to filing late yesterday.

“This is the initial public offering of Digicel Group Limited. We are offering 124.1 million of our Class A common shares. We have granted the underwriters an option to purchase up to 18.6 million additional Class A common shares at the initial public offering price, less the underwriting discount, for 30 days after the date of this prospectus,” stated Digicel.

“We currently expect the initial public offering price to be between $13 and $16 per share. Our Class A common shares have been approved for listing on the New York Stock Exchange, subject to official notice of issuance, under the symbol DCEL.”

Digicel added that the offer in its prospectus was incomplete and subject to change. In June, Digicel said it planned to list on the US-based exchange but the number of shares to be offered and the price range for the proposed offering were not disclosed. The offering will be made by means of a prospectus.

Digicel said it intends to use the net proceeds of the offering for general corporate purposes, including capital expenditures and acquisitions, and to repay existing indebtedness. The company also added that it doesn’t expect that any proceeds will be used to fund dividends to common shareholders.

About Digicel: Digicel is a leading provider of communications services in 31 markets in the Caribbean, Central America and South Pacific regions. It provides its 13.6 million subscribers with a comprehensive range of mobile communications, business solutions, cable TV and broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and governments. For the 3 months ended June 30, 2015, Digicel generated operating profit of US$165 million on total revenue of US$669.7 million, but recorded a net loss of US$31.4 million, financials indicated. The group holds total debt of US$6.46 billion.