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Telefonica Germany shares rise after IPO | Reuters
Shares in Germany's smallest mobile operator (O2Dn.DE), which were placed with investors for 5.60 euros each on Monday, started trading at 5.70 euros and rose to 5.76 euros by 0937 GMT, giving the unit a value of 6.4 billion euros ($8.3 billion).
Telefonica raised nearly 1.45 billion euros from listing the 23 percent stake in its German operation, which is its third-largest in Europe after its home market of Spain and Britain. It initially set the price in the lower half of its indicative range, reflecting investor concerns about being minority shareholders and the relatively small flotation.
The IPO proceeds will largely go to reduce Telefonica's debt and is part of a programme of asset sales and cost cuts aiming to protect Telefonica's credit rating.
..."Investors appear to have demanded a discount given Telefonica position as a forced seller, the uncertainty surrounding its future plans for Telefonica Germany, limited prospects for in-market consolidation and recent comments by local competitors indicating a deteriorating pricing environment," said analysts at Espirito Santo Investment Bank.
Shares in Germany's smallest mobile operator (O2Dn.DE), which were placed with investors for 5.60 euros each on Monday, started trading at 5.70 euros and rose to 5.76 euros by 0937 GMT, giving the unit a value of 6.4 billion euros ($8.3 billion).
Telefonica raised nearly 1.45 billion euros from listing the 23 percent stake in its German operation, which is its third-largest in Europe after its home market of Spain and Britain. It initially set the price in the lower half of its indicative range, reflecting investor concerns about being minority shareholders and the relatively small flotation.
The IPO proceeds will largely go to reduce Telefonica's debt and is part of a programme of asset sales and cost cuts aiming to protect Telefonica's credit rating.
..."Investors appear to have demanded a discount given Telefonica position as a forced seller, the uncertainty surrounding its future plans for Telefonica Germany, limited prospects for in-market consolidation and recent comments by local competitors indicating a deteriorating pricing environment," said analysts at Espirito Santo Investment Bank.
