German web hosting firm IONOS is to brave the IPO markets in what will be Europe’s largest float since car maker Porsche listed in September.
Up to €543mln worth of shares will be sold in the float in Frankfurt, which will value the Montabur, Germany, HQ’d business at €3.5bn.
Existing shareholders United Internet and private equity group Warburg Pincus will sell 15% of their holdings, giving a free float of 17.3% if all shares on offer are bought.
Pricing will be in a range of €8.50 to €22.50, which the domain hosting and email specialist told Reuters was based on the valuation attributed to US rival Go Daddy.
Investors, however, had demanded an "icebreaker discount” given IONOS is the first big IPO of the year, according to the newswire.
"The positive feedback we received from numerous investors reinforces our belief that the IPO will strengthen our successful growth trajectory," IONOS chief executive Achim Weiss said.
IONOS, which operates in the US, UK, Germany France, Spain and Poland, is expected to generate underlying profits or EBITDA in the region of €380mln in 2023.
The business in its current form came together when 1&1 Internet and ProfitBricks merged in 2018.