Digicel Group Ltd. filed an amended F-1 form 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, though this number usually acts as just a placeholder. The company plans to list its shares on the New York Stock Exchange under the symbol DCEL.
The underwriters for the offering are JPMorgan, UBS Investment Bank, Citigroup, Barclays and Credit Suisse, Deutsche Bank and Davy Group. In the most recent filing, Deutsche Bank and Davy were added as underwriters.
Upon consummation of this offering, there will be two classes of common shares. The rights of the holders of our class A common shares and class B common shares will generally be identical, with the exception of voting and conversion rights. Each class A common share will be entitled to one vote. Each class B common share will be entitled to 10 votes and will be convertible at any time at the option of the holder into one class A common share.
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 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, an operating profit of $707.8 million, a net loss of $157.6 million and Adjusted EBITDA of $1.2 billion, representing an Adjusted EBITDA margin of 42.3%. For the three months ended June 30, 2015, Digicel generated total revenue of $669.7 million, an operating profit of $165.0 million, a net loss of $31.4 million and Adjusted EBITDA of $277.5 million, representing an Adjusted EBITDA margin of 41.4%… 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 revenue was 19.6% for the year ended March 31, 2015 and 26.8% for the year ended March 31, 2014. For the three months ended June 30, 2015, and 2014, respectively, Digicel’s operating free cash flow was $88.8 million and $161.2 million, which as a percentage of revenue was 13.3% for the three months ended June 30, 2015 and 23.8% for three months ended June 30, 2014.
Digicel intends 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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