Digicel Files for IPO

By Chris Lange Updated Apr 27, 8:13PM EDT · Published Jun 29, 4:09PM EDT

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Digicel Group Ltd. has filed a Form F-1 with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No terms were given in the filing, but the offering is valued up to $200 million. The company plans to list its shares on the New York Stock Exchange (NYSE) under the symbol DCEL.

The underwriters for the offering are JPMorgan, UBS Investment Bank, Citigroup, Barclays and Credit Suisse.

The company is a provider of communications services in the Caribbean and South Pacific regions. It provides a comprehensive range of mobile communications, business solutions, cable TV and broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers.

Digicel currently provides mobile communications services to 13.6 million subscribers in 31 markets with an aggregate population of approximately 32 million people. The mobile subscriber base has grown from 0.4 million as of March 2002, to 13.6 million subscribers as of March 2015, representing a compound annual growth rate (CAGR) of 32.3%.

The company detailed its financial position in the filing:

In the year ended March 31, 2015, Digicel generated total revenue of $2.8 billion, a net loss of $157.6 million and Adjusted EBITDA of $1.2 billion, representing an Adjusted EBITDA margin of 42.3%. Digicel uses “operating free cash flow” and “adjusted operating free cash flow”, which are non-IFRS measures, to illustrate the underlying cash generation of its business and the calculation of these measures is set out in “Summary Consolidated Financial and Operational Information”. Digicel’s operating free cash flow was $548.5 million for the year ended March 31, 2015 and $737.7 million for the year ended March 31, 2014, which as a percentage of revenues was 19.6% for the year ended March 31, 2015 and 26.8% for the year ended March 31, 2014. Digicel’s adjusted operating free cash flow, which excludes certain non-recurring capital expenditures, was $814.1 million for the year ended March 31, 2015, and $804.1 million for the year ended March 31, 2014, and as a percentage of revenue was 29.1% and 29.2% for the years ended March 31, 2015 and 2014 respectively.

Digicel intend to use the net proceeds of the offering for general corporate purposes, including capital expenditures and acquisitions and to repay existing indebtedness.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.