Telefónica's initial public offering of its O2 Germany subsidiary has been a notable success, with the shares closing up 4 per cent in the first day's trading. The IPO was the largest in Europe so far in 2012.
The IPO of Telefónica's O2 Germany unit is already oversubscribed after only three days into the marketing process, according to a Bloomberg report .
The prospects for O2 Germany's €1.68 billion initial public offering are being boosted by tax credits that could allow the Telefónica subsidiary to avoid paying taxes over the next three years, according to IPO prospectus documents seen by Bloomberg .
Telefónica received a €4.3 billion cash dividend from its O2 Germany subsidiary only weeks before starting a campaign to launch an initial public offering for the unit, according to a Bloomberg report.
Telefónica is looking to sell shares in its O2 Germany subsidiary significantly above the industry average, according to multiple reports.
Huawei has reached out to investment banks to explore the possibility of an initial public offering but has made no decision on whether to do so, according to multiple reports.
Telefónica is trying to attract investors with high dividend payouts to its planned IPO of its O2 Germany subsidiary.
CyrusOne, the data center subsidiary of Cincinnati Bell, filed papers Wednesday with the Securities and Exchange Commission for a proposed initial public offering.
India's Reliance Communications has decided not to pursue an initial public offering of its FLAG submarine cable unit due to what it says are "unfavorable" market conditions.
Telefónica has reportedly appointed banking firms UBS and JPMorgan Chase to prepare its O2 Germany unit for an initial public offering, with the number of shares offered being dependent upon demand. Separately, KPN has also reportedly contracted UBS to sell the 18,000 base stations used by its E-Plus German division.