Local telecom group Digi Communications plans to distribute dividends worth some RON 35 million (EUR 7.5 million) to its shareholders from last year’s net profit.

The proposal came as a surprise, as the company hasn’t paid dividends in previous years.

Digi Communications listed its shares on the Bucharest Stock Exchange last year after a EUR 210 million initial public offering (IPO), the biggest transaction of this kind carried out by a Romanian private company. However, the company’s shares didn’t evolve according to the investors’ expectations. The Digi shares are currently trading at RON 34.5 (the closing price on Wednesday), compared to a RON 40 price in the IPO.

Digi Communications posted a net profit of EUR 61.7 million in 2017, five times higher than in 2016, as its revenues increased by 8.8% to EUR 916 million. The company currently has a market capitalization of EUR 742 million.

editor@romania-insider.com