Vodafone’s Vantage Towers climbs after Germany’s biggest IPO

Vodafone Stock

Vodafone’s Vantage Towers climbs after Germany’s biggest IPO

Vodafone (LSE:VOD) UP 0.37% AT 137.42

Shares in Vodafone (LSE:VOD)’s Vantage Towers rose on Thursday in Germany’s largest stock market debut in three years, benefiting from strong investor appetite for infrastructure assets with stable returns.

Its shares were up 3.3% at 24.8 euros at the market open, compared with an offer price of 24 euros, which had been set in the lower half of the 22.50-to-29-euro marketing range.

Vodafone is earning as much as 2.3 billion euros ($2.8 billion) – taking into account a 300-million-euro over-allotment option, or green shoe – in a deal that values Vantage Towers at 12.1 billion euros.

“This IPO unlocks value for our shareholders: it demonstrates the value of our towers assets in a 5G world,” Vodafone Chief Executive Nick Read said.

Telecom towers have become the target of several big deals as Spain’s Cellnex and U.S.-based American Tower Corp (NYSE:AMT) race to expand in Europe for the roll-out of next-generation 5G technology.

Upgrading networks, including telecoms towers, for the faster technology will soak up some $890 billion between 2020 and 2025, the GSMA industry body says.

On technical fronts Vodafone (LSE:VOD) RSI stood at 68.37 and currently stock is trading above all Moving Averages. So, BUY position can be taken with following target and stoploss.

TRADE SIGNAL -: Vodafone (LSE:VOD) – BUY: 137.09, TARGET: 139.41, STOP LOSS: 135.99

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