(Updates with final price)
Feb 7 (Reuters) - German web hosting company IONOS on
Tuesday priced shares for its initial public offering (IPO) at
the bottom of its target range, as investors took a cautious
approach to the first major European flotation since carmaker
Porsche in September.
IONOS's shares will debut at 18.50 euros ($19.88) apiece
when they list on the Frankfurt Stock Exchange on Wednesday, its
parent company United Internet said in statement.
That will give IONOS a market capitalisation of around 2.6
billion euros.
The stock's target valuation ranged from 18.50 to 22.50
euros per share.
The flotation was 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.
Should banks exercise an "over-allotment" option to issue
additional shares, United Internet and minority partner Warburg
Pincus will reap total proceeds of 447 million euros from the
IPO.
The company will have a free-float of 17.3% if all shares
are placed.
($1 = 0.9308 euros)
(Reporting by Friederike Heine and Pablo Mayo Cerqueiro;
Editing by Arun Koyyur and Mark Potter)
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