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Finnish telco says proceeds will position company for its next development phase.
Finland’s DNA this week kicked off an IPO that aims to raise up to €518 million.
The telco is selling up to 35.95 million shares and issuing €50 million worth of new shares. The IPO also includes an over-allotment of up to 6.06 million shares. With a price range of €9.85-€11.15 per share, the process will raise between €464 million and €518 million, provided the over-allotment option is exercised in full.
DNA’s market capitalisation implied by the price range is between €1.3 billion and €1.47 billion.
The subscription period for the offering began on Tuesday, and the shares are due to begin trading on the Helsinki Stock Exchange from 2 December, under the ticker "DNA".
DNA was on the verge of selling itself, either to private investors or via a flotation, in 2013, but scrapped the plan due to adverse market conditions. In July this year, the company revealed that it was considering an IPO.
"Committed shareholders and motivated personnel have built DNA into a strong Finnish telecommunications service provider," said Jukka Leinonen. CEO of DNA, in a statement. "We have a solid base to further develop our business and create value for our new shareholders. DNA is ready to move to a new phase and continue its operations as a publicly listed company."
DNA said it will use the proceeds from the IPO to position the company for its next development phase.
"The initial public offering will enable DNA to obtain access to capital markets, expand its ownership base and increase the liquidity of the shares," the company said. "Additional visibility provided by the IPO is also expected to increase DNA’s recognition among the public and as an employer, and thus enhance the company’s competitiveness."
