BERLIN, Germany — Global Fashion Group (GFG) on Wednesday cut the price of its planned initial public offering (IPO) to €4.50 (around $5.10) a share in a last-ditch effort to salvage its stock market listing.
GFG, in consultation with its bookrunners, reduced the offer price to €4.50 per share from an initial price range of 6 to €8 (around $7-9).
Asked by Reuters about the reasons for the step, a spokeswoman cited "current market conditions" but added that pursuing the IPO was still the company's plan.
On Tuesday, Global Fashion Group said it extended the offer period to June 28, and sources told Reuters that cancelling the listing had also been discussed.
The sources also said that investors had expressed scepticism about investing in the company which, focussing on emerging markets in Latin America and Asia, operates The Iconic, Zalora, Dafiti and Lamoda platforms.
Swedish investor Kinnevik, which currently owns 36.8 percent in the company and Germany's Rocket Internet , holding 20.4 percent, have agreed to place orders for shares worth 60 million and €40 million respectively, GFG said.
"GFG's Management Board, after consultation with the joint global coordinators, will determine whether to fill orders placed under these irrevocable commitments in full, in part, or not at all," it added.
With the listing on the Frankfurt stock exchange, which is being carried out by Goldman Sachs, Morgan Stanley and Berenberg as bookrunners, GFG is aiming for a market capitalisation of more than €1 billion.
By Tassilo Hummel; editor: Edward Taylor.