Report: O2 Germany's IPO already oversubscribed as funds rush in

The IPO of Telefónica's O2 Germany unit is already oversubscribed after only three days into the marketing process, according to a Bloomberg report.

The report, citing deal terms obtained by Bloomberg, said that fund managers from around Europe have placed sufficient orders to see the number of O2 Germany shares on offer fully covered, including the overallotment option. Telefónica declined to comment, according to Bloomberg.

An unnamed source told Reuters he was "extremely relaxed about the IPO given the high investor demand." the IPO may raise as much as €1.68 billion, reports have indicated.

This enthusiasm for the IPO comes before the share price has been set--the guide price is between €5.25 and €6.50 each, and is being run by JP Morgan and UBS with a completion date of Oct. 30, according to Reuters.

"This shows how the deal is very attractive to investors even if the valuation was regarded as higher than its peers," Andres Bolumburu, an analyst at Banco de Sabadell in Madrid, told Bloomberg. "Strong demand for the shares could mean the price range could be at the high end. It's definitely good news for the company because it erases all doubts about a potential failure of the IPO."

Telefónica management is due to meet with potential investors in Europe and the United States in the next few days, Bloomberg reported.

For more:
- see this Bloomberg article
- see this Reuters article

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