Vantage Towers IPO

Hi All,

Can we keep an eye on Vantage Towers IPO and have it on the platform when it IPO’s



I just replied to a topic on a less well-known IPO, but I imagine that the situation will be the same. I have linked the reply below.

As IBKR do not prioritise european IPOs, it is likely that it will not be available on the day, bt more likely to be the day after or later that week. Having said this, considering its size and the size of Vodafone it is likely to be available quicker than other small cap IPOs.

What’s peoples perception of this new stock?
I have a good slice in Vodafone but have been reading about a large debt regarding this IPO.
Anyone care to hazard a guess at launch price?

Anyone going to be interested in this?

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I’d be interested, depending on the price. I have not looked into it yet though.

I’m still in the process of reading their prospectus.

Might be an interesting value & 5G play.

Do you have a link to it by any chance? :smiley:


Seems that opening price will be between E22 and E29 a share. Factor in the fx / exchange fee it not going to be chap share. Probably be a few days before it can land on T212

What do you people think about Vantage Towers? Read somewhere that they’re similar to CCI or AMT but don’t know those that well either.

VOD will retain a large stake of the company and the entire supervisory board is controlled by VOD people, raising questions for me as to which extend that will affect Vantage being able to let competitors of VOD into their client base.

I think it will boom and break to start with. It looks over priced to me but I’m no expert. I’ll leave it for now and see if it drops a few weeks after it’s settled in.

Probably cheap to put the money in VOD actually

Go time!

Vantage Towers starts trading, Vodafone makes €2.3 billion – First day went successful. Now all a waiting game until its on the platform :grinning:

personally think it’s a bit more at a reasonable price now at €24, will initiate my initial starting position around these prices I think

According to the info on the T212 app (from Reuters) it is trading at a P/E ratio of nearly 39 and at over 12 times revenues.
If you don’t mind me asking, what is your investment thesis?
Are you hoping that if Vodafone gives away the control of the company and it becomes “impartial” it may be able to increase the number of companies using its towers and therefore rapidly increase revenues and margins?

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Earnings imo aren’t the best thing to look at with such a business as depreciation is very large.
BTW the info on T212 is from their FY2020 pro forma which ended march 31 2020, they have a broken book year so it’s missing the last 12 months.

Mid term outlook
The capital within the business can now be allocated better and it seems that they’re gaining quite some non-Vodafone tenants.

It’s difficult to predict how it will exactly play out but they’re a high margin business (ebitda margin of 86%, including the cost of leased assets leaves us with a more accurate EBITDAaL of 54%), very high cash conversion rates (~96%).

The business seems high quality and if they continue to diversify the tenant base (preferably at higher speeds) this might prove well. Growth is the more uncertain part as that might, or might not, pick up pace.

Valuations seem quite rich but these numbers barely contain any info post ipo (so this tenant diversification and charging better rates to everybody ), so we have to wait for new outlooks and progress

EV/Adjusted EBITDA = €16.86B/(€0.0525B/0.86) = 27.6
EV/Adjusted EBITDAaL = €16.86B/€0.525B = 32.1

Not cheap but definitely not too expensive compared to American sector pears:
AMT: EV/EBITDA = 28.31
CCI: EV/EBITDA = 31.94

And considering that there is some potential for better margins and growth if (and that’s one assumption I’m making) more tenant diversification comes along and higher rates start being charged. The worry I have is that Vodafone indeed maintains some control over the company: