LONDON, Feb 8 Reuters Shares in German web hosting company IONOS dipped below the price of its initial public offering IPO on Wednesday after Europe39;s first major stock market debut since Porsche in September.

Shares started trading at 18.40 euros apiece and were changing hands at around 18.00 in morning trading. Books closed on Tuesday with a final IPO 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 runup to the listing, a source close to the matter said before books closed on Tuesday.

The deal 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 overallotment option to issue additional shares, giving the company a freefloat of 17.3.

IONOS parent United Internet and minority shareholder Warburg Pincus could make as much as 447 million euros from the flotation.

Reporting by Pablo Mayo Cerqueiro Editing by Rachel More and Mark Potter

Source Reuters