IHS Towers recorded an 18-percent plunge in its share price to $17.12 as of noon, Oct. 14, compared to the $21 at which the company earlier traded.
The decline in its share price follows its recent IPO debut on the New York Stock Exchange (NYSE), which valued the company at almost $7 billion. Nevertheless, the deal raised $378 million to fund growth plans, Bloomberg reported.
A few weeks ago when the company mentioned its plans to list on the NYSE, it predicted an IPO price for the 22.5 million ordinary shares to be listed on the bourse at $21 to $24 per share.
IHS Towers is one of the world’s largest independent owners, operators and developers of shared telecom infrastructure.
It is the largest telecom infrastructure provider in Africa, Europe, Latin America and the Middle East by tower count, and globally the third-largest independent multinational tower company.
IHS Towers was founded in Lagos, Nigeria, in 2001 by Sam Darwish, a U.S. telecom tycoon who serves as its CEO.
Commenting on the IPO, Darwish stated that the proceeds raised on the NYSE will be used to build within its current markets and move into new markets.
“We have high growth markets that require new sites,” Darwish said. “We look at markets in Asia and Latin America and if a new opportunity to acquire a portfolio of towers presents itself, or go with a large greenfields project, we will definitely do that.”
Several days ago, the telecom company signed a partnership deal to obtain a license from Egypt’s National Telecom Regulatory Authority to erect and lease telecom towers in the country.
The deal created IHS Telecom Towers Egypt SAE, with Darwish holding an 80-percent stake and Egypt Digital Company for Investment 20 percent in the new venture.