Digicel flotation date may follow US Fed decision

Businessman Denis O’Brien’s mobile operator, Digicel, may decide on a date for its $2 billion Wall Street launch after next week’s decision on US interest rates.

Digicel, which runs telecoms networks in the Caribbean, Central America and Pacific, is planning to raise between $1.5 billion and $2 billion from a sale of some its shares on the New York Stock Exchange.

Reports yesterday indicated that it could fix a launch date after Federal Reserve – the US central bank – meets over Wednesday and Thursday.

The Fed is likely to decide on whether or not to raise interest rates, a move reports say would provide Digicel with the nearest opportunity to set a price and date for the stock market flotation.

Market volatility

Digicel looks set to go ahead with its plan to float despite recent stock market volatility sparked by China’s decision last month to devalue its currency.

The company announced the plan at the end of June. It intends to use the money raised to pay for further expansion, acquisitions and to pay off debt. BARRY O’HALLORAN