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(Reuters) -German web hosting firm IONOS is expected to price its initial public offering (IPO) at the bottom end of the targeted valuation range, according to a message from banks to prospective investors seen by Reuters.
Banks on the deal informed prospective investors shortly before the end of the subscription period that shares would likely be sold at 18.50 euros ($19.80) apiece.
At that price, the company will have market capitalisation of around 2.6 billion euros when it lists on the Frankfurt Stock Exchange on Wednesday.
IONOS had originally set a price range of 18.50 to 22.50 euros for the stock sale and is the first major float in Europe since Porsche (ETR:)’s blockbuster debut last September.
The deal is seen as a test of investor appetite for new publicly traded companies after IPO activity plunged in 2022.
Investors expected an “icebreaker” discount for IONOS, a source previously told Reuters, to entice them to buy into the deal.
($1 = 0.9341 euros)
