Aggi Cantrill
Swetha Gopinath
Shares in United Internet AG’s web hosting arm Ionos SE dropped following the company’s debut on the Frankfurt Stock Exchange, the first test of the German exchange this year.
Ionos fell to €18.14 at 9:20 a.m. in Frankfurt. That’s compared to a 0.8% gain in the Stoxx Europe 600 Index.
The company priced its shares at the bottom end of an initial range at €18.50 apiece, raising €389 million ($418 million) and giving it an initial valuation of €2.6 billion. That’s about half of what Ionos had originally targeted
Read More: Ionos IPO Raises €389 Million After Pricing at Bottom-End
It’s the first major listing in Germany since Porsche AG’s launch last September after investor concerns about the economy discouraged new share sales. Globally, the number of listings last year fell by almost half, according to data compiled by Bloomberg.
The company, whose publicly traded peers include GoDaddy Inc.Squarespace Inc., focuses on small and medium-sized enterprises in Europe and North America.
Ionos also runs a fast-growing cloud business that competes with firms including France’s OVH Groupe SAS and New York-listed DigitalOcean Holdings Inc.
