Telecom Italia (TI) revealed more details of the planned IPO of its towers business Inwit, which could see it raise up to $1 billion as it looks to upgrade its networks and grow its domestic business.
The company is planning to offer up to 40 per cent of Infrastrutture Wireless Italiane, pending regulatory approval.
“Telecom Italia today announces that, subject to the necessary regulatory approvals from Consob [Italy’s stock market regulator], the price range of the initial public offering of shares in Inwit has been set,” the company said in a statement.
Shares will be priced between €3.25 and €3.90, giving the unit a valuation of between €1.95 billion and €2.34 billion.
Inwit has 11,500 sites where it hosts radio transmission equipment for mobile phone networks. It generates revenues by leasing capacity and services from wireless tower infrastructure to mobile players in the country.
TI’s move follows a similar trend across the sector of tier one telecom operators deciding to lease or sell their legacy fixed tower infrastructure.
Earlier this month, CEO Marco Patuano revealed TI will be a “key player” in consolidating tower assets in Italy.
Last year, the company completed a $900 million deal with American Tower to divest 6,481 towers owned by TIM Participacoes, TI’s majority-owned mobile operator in Brazil.