The State's biggest telecoms operator Eircom said today it planned to return to the stock market in the first half of March, raising €300 million through a primary issue of new shares.
Valentia, the holding company which owns Eircom, said in a statement the offering would also include a substantial secondary offer of exisiting ordinary shares.
As part of the flotation, Valentia will change its name to Eircom Group PLC.
It said Eircom would be floated in London and Dublin, with Citigroup, Deutsche Bank, Goldman Sachs and Morgan Stanley acting as joint bookrunners to the offer.
The IPO could raise in the region of €1 billion, split between a primary offering of new equity and a second offering in which existing shareholders will sell shares.
The secondary offering of stock by the exiting shareholders could raise between €600 million and €1 billion based on a predicted enterprise valuation range of €3.2 billion to €4 billion for the business.
Eircom chief executive officer Dr Philip Nolan said: "We are delighted that eircom is returning to the market. Since Valentia took ownership we have focused on our core fixed-line telecommunications business, exited non-core businesses, reduced costs and made broadband available in Ireland".
Dr Nolan said: "We believe there remains scope for further efficiency gains over the years ahead and this, together with our position in the Irish market, our strong brand and the potential for broadband services, gives confidence that we will be able to serve the interests of customers and shareholders alike."
Analysts have said the flotation of the former state company will value it at around €3.5 billion, of which around €1.3 billion will be in equity and €2.2 billion in debt.
Valentia said the net proceeds of the flotation would be used primarily to repay a portion of its existing debts and for general corporate purposes.
At present, Providence Equity Partners holds 43.5 per cent of the company, Soros Private Equity 18.5 per cent, Irish businessman Tony O'Reilly 5.5 per cent and Goldman Sachs 1.5 per cent.
The source said those shareholders would sell most, if not all, of their stakes.
Valentia said Eircom had a consolidated turnover of €1.23 billion for the nine months to the end of December 2003 and earnings before interest, tax, depreciation and amortisation (EBITDA) of €450 million.
Valentia, which is 70 per cent owned by Sir Tony O'Reilly, Providence Equity Partners and Mr George Soros, purchased Eircom for €3 billion in 2001.
Eircom was delisted from the Irish, UK and US stock exchanges in December 2001.