Vodafone Group’s Vantage Towers began trading on the Frankfurt Stock Exchange, with the listing valuing the infrastructure unit at more than €12.1 billion after shares were priced at €24 each.

Vodafone will generate €2.3 billion from the deal, as long as an over-allotment option is fully exercised.

The operator had set an IPO price range at between €22.50 and €29 per share, before narrowing it to between €24 and €25 prior to the start of trading this morning (18 March).

Vodafone will continue to hold just over 81 per cent of the unit, if all goes to plan, with the proceeds used to reduce debt.

Ahead of the listing, Vodafone CEO Nick Reid said the IPO unlocks value for shareholders and demonstrates “the value of our tower assets in a 5G world”. He added it set up Vantage Towers to unlock “its full potential as a focused independent tower operator”.

Vodafone announced its plans for the IPO at the start of March, and Vantage Towers’ offer to prospective investors ended yesterday (17 March), before free trading began.

Its CEO Vivek Badrinath said it had “great engagement with investors” and was pleased to complete the offering.

“The IPO is an important milestone and sets the foundations for the next stage of Vantage Towers’ growth within the dynamic towers sector,” he added.

Vodafone’s move comes as towers and infrastructure units continue to generate interest among specialist investors and private equity companies, with operators targeting the assets as a way to raise cash to cut debt and fund investment in next-generation networks.