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Recently-appointed CEO Mark Evans reportedly says move would be ‘well received’ by U.K. economy.
O2 UK’s new CEO Mark Evans is keen for his company’s forthcoming IPO to be open to individual investors.
He said in a Telegraph report on Saturday that he is keen to "make sure the shares are available to as many people as are interested," adding that opening up the flotation to individuals "would be well received for the U.K. economy."
However, the final decision rests with Telefonica, not O2 UK, he added.
The Spanish incumbent is pursuing an IPO after its plan to sell O2 to 3UK parent CK Hutchison was blocked by the European Commission. The company is keen to raise cash that will pay off some of its hefty net debt.
Reports last week claimed that Telefonica aims to float up to 40% of O2 UK, and has already picked four banks to lead the process, including Barclays, Morgan Stanley and UBS.
According to Haitong Research, selling approximately 40% would bring in approximately €4.8 billion.
Telefonica’s O2 IPO is likely to be better received by potential investors than the proposed IPO of its infrastructure business Telxius.
Telefonica last week abandoned plans to list the unit on grounds that the indicative valuation fell too far below its expectations.
At the time, there were doubts about the monetisation potential of some Telxius’ assets, namely its submarine cable networks.
With around 25 million mobile customers, an O2 UK IPO represents a much more obvious proposition.
"I think there would be a reasonable demand for what we have to offer," Evans said, in Saturday’s Telegraph report.
