Vodafone Vantage Towers IPO

Vodafone is planning to spin off its mobile tower business, Vantage Towers (formerly TowerCo), in early 2021. Here, you’ll discover everything you need to know about the initial public offering (IPO) and how you can trade it with IG.

Start trading today. Call 0800 195 3100 or email newaccounts.uk@ig.com. We’re here 24 hours a day, from 8am Saturday to 10pm Friday.

Contact us: 0800 195 3100

Start trading today. Call 0800 195 3100 or email newaccounts.uk@ig.com. We’re here 24 hours a day, from 8am Saturday to 10pm Friday.

Contact us: 0800 195 3100

When is Vodafone’s Vantage Towers IPO?

There is no set date for the Vantage Towers IPO, but Vodafone has stated that it plans to list the company on the Frankfurt Stock Exchange in early 2021. It hopes this will position Vodafone to capitalise on increasing demand for 5G technology. The final date of the IPO will depend on market conditions.

How to trade the Vodafone Vantage Towers IPO

If you want to trade the Vodafone Vantage Towers IPO, you can choose to do so before or after the listing. However, whether you can trade before the IPO will depend on whether a grey market is available.

Before the IPO

Before the IPO, IG could offer a ‘grey market’, which would enable you to get exposure to Vantage Towers before the company lists.

If we do offer a grey market, its price will be based on our prediction of Vantage Towers’s market capitalisation at the end of the first trading day. You can go long or short on this prediction – long (buy) if you think the market cap will go up and sell (short) if you think it will go down.

After the IPO

After the IPO, you can either buy Vantage Towers shares or speculate on its share price movements.

You would buy the shares via IG’s share dealing service if you want to own the physical shares. Alternatively, you could use a spread betting or CFD trading account if you want the flexibility to speculate on upward or downward movements in the share price. When trading, you do not own the underlying asset.

Trade or invest in similar stocks today

If you want to get exposure to other companies in the mobile technology sector right now, you can choose between stocks such as Vodafone and BT.

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Prices above are subject to our website terms and conditions. Prices are indicative only.

What will the Vodafone Vantage Towers IPO value be?

It is not yet known what the value of Vantage Towers will be when it lists, as its parent company, Vodafone, has not yet given a range for the listing. It has only stated that it expects the company to debut on the stock market with a value of less than €10 billion.

However, some analysts expect the company to be worth significantly more, with estimates of up to €21 billion suggested based on the market caps of other European tower companies. Its final valuation will depend on the number of tower assets Vodafone decides to spin-off as part of the newly-listed company.

What could the Vantage Towers share price be when it floats?

The Vantage Towers share price will depend on two factors – the final IPO valuation and the number of shares Vantage Towers will release to the public. The share price will fluctuate after the listing as buyers and sellers enter and exit the market.

Why does Vantage Towers want to go public?

Vantage Towers wants to go public as part of Vodafone’s plans to monetise its tower assets. Vodafone could make billions from the IPO – which it needs to pay off debt. It reported net debt of €42 billion in its 2020 annual report. This figure is up 56% from the previous year. Further to this, Vodafone CEO Nick Read said that Vantage Towers will unlock opportunities for network sharing.

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Fast execution on a huge range of markets

Enjoy flexible access to more than 17,000 global markets, with reliable execution

Deal seamlessly, wherever you are

Trade on the move with our natively designed, award-winning trading app

Feel secure with a trusted provider

With 45 years of experience, we’re proud to offer a truly market-leading service

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Log in to your account now to access today’s opportunity in a huge range of markets.

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What is the outlook for Vantage Towers?

The outlook for Vantage Towers is positive. Vodafone announced revenues from its towers of €950 million in FY20, with adjusted earnings before interest, taxes, depreciation and amortisation of €680 million. However, the long-term outlook for Vantage Towers and its IPO will be closely related to its competitors’ performance and demand for 5G.

Who are Vantage Towers’s competitors?

Vantage Towers’s competitors include Deutsche Telekom (valued at €72.26 billion), Telefónica (valued at €32.71 billion) and Cellnex (valued at €11.06 billion). Cellnex is currently the largest tower network in Europe by scale (45,000 sites) but will be overtaken by Vantage Towers when the business launches in May 2020.

What is Vantage Towers’s business model?

Vantage Towers’s business model is to use Vodafone’s mobile towers, which will be separated into the Vantage Towers entity, as shared infrastructure for other mobile carriers. More than 68,000 of Vodafone’s towers across ten countries could be used to build Europe’s largest tower portfolio. The bulk of its sites are based in Germany, Spain and Greece, as well as Italy - through its minority stake in Inwit.

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What is an IPO?

An IPO is a financial event in which a company lists its shares on an exchange. IPO is short for ‘initial public offering’. An IPO enables the public to buy or trade the company’s shares. To learn more about how IPOs work, watch this video.

FAQs

Yes, you could profit from the Vantage Towers listing – before and after the IPO. If we offer a grey market, you can trade the Vantage Towers IPO before it happens. After the IPO, you can trade Vantage Towers shares via CFDs or spread bets and profit if you correctly predict the direction of the share price movements. Alternatively, you could buy the shares outright via the IG share dealing service and would profit if their price goes up.

You can stay up to date with the Vantage Towers IPO by signing up to our IPO mailing list.

Vantage Towers is owned by Vodafone. The spin-off was prompted by a 2018 asset review, which identified an opportunity for Vodafone to make money off its passive tower assets while giving it more time to focus on its 5G rollout.

Vantage Towers was started when Vodafone decided to monetise and improve the use of its tower assets by creating a spin-off company. The new business holds industrial benefits for Vodafone such as digital network sharing across various regions.

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