off-the-wire

CORRECTED-UPDATE 1-IONOS shares debut at 18.40 euros in icebreaker IPO

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Corrects opening share price to 18.40 not 18.41) By Pablo Mayo Cerqueiro LONDON, Feb 8 (Reuters) - Shares in IONOS started trading at 18.40 on Wednesday in the German web hosting firm's debut on the Frankfurt stock exchange, Europe's first major initial public offering (IPO) since Porsche in September. Books closed on Tuesday with a final price of 18.50 euros, the company said. The listing of IONOS, whose closest peer is U.S.-based GoDaddy , was seen as a test for market sentiment after IPO activity all but ground to a halt in 2022.


The offering was oversubscribed multiple times at the bottom of the proposed valuation range of 18.50 to 22.50 euros per share, in a sign that markets may be cautiously opening up to new entrants.


A meaningful portion of orders came from hedge funds in the run-up to the listing, a source close to the matter said before books closed on Tuesday.


The deal had piqued the interest of a significant number of investors, with roughly 750 meetings set up to market the IPO, the source added.


Underwriters for the deal may use an "over-allotment" option to issue additional shares, giving the company a free-float of 17.3%.


IONOS parent United Internet and minority shareholder Warburg Pincus stand to rake in as much as 447 million euros from the float.
(Reporting by Pablo Mayo Cerqueiro, editing by Rachel More)

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