IONOS shares debut at 18.41 euros in icebreaker IPO (updated)

United Internet AG

08/02/2023 08:18

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    By Pablo Mayo Cerqueiro
       LONDON, Feb 8 (Reuters) - Shares in IONOS  IOSn.DE 
started trading at 18.41 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  P911_p.DE  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  GDDY.N , 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  UTDI.DE  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)
 ((Pablo.MayoCerqueiro@thomsonreuters.com;))