Telefonica has received orders for all the shares it is offering in its German unit in a EUR 1.5 billion stock market listing, three days into the marketing process, Reuters reports, citing five unnamed people close to the transaction said. Two of the people said the Telefonica Germany listing was already oversubscribed, including a greenshoe, or overallotment, option. One of the sources said he was "extremely relaxed about the IPO given the high investor demand".
Telefonica is selling a stake in the German unit as it tries to cut EUR 58 billion in debt and hang on to its prized investment-grade rating, under pressure from the euro crisis in its Spanish home market. The shares are to be listed at between EUR 5.25 and EUR 6.50 each on 30 October, thus Telefonica is expected to raise about EUR 1.5 billion. The exact pricing of the IPO, which is being run by JP Morgan and UBS, has not yet been determined, with six days of the book-building process to go, the sources added.
