![Posti expands alternate day delivery](https://postandparcel.info/wp-content/uploads/2019/04/posti-consultative_talks-150x150.jpg)
German Deutsche Post ‘under pressure to cut Postbank IPO price’
Pressure is mounting on Deutsche Post to cut the price range for the IPO of its Postbank banking unit, as bankers admit hardly any investors are signing up for the offer.
Halfway though the bookrunning for the deal, one senior executive at a bank involved in the offering told the newspaper: ‘We have probably contacted 60 investors and, to a man, they have said ‘No’. They are not sitting on the fence. These were just flat refusals.’
Bankers spent the end of last week signalling a preparedness to cut the 31.50-36.50 eur price range for the offering by asking investors how low the price would have to go before they would subscribe, the newspaper added.
Fund managers in the UK and US, where Deutsche Post said it expected to see the strongest demand, have been particularly negative about the range, the FT said.
Meanwhile the Financial Times Deutschland reported that about 50 pct of Deutsche Post employees and 63 pct of Postbank workers have signed up to buy shares.
Both groups receive half their shares at no cost and the other half as an interest free loan if they buy more than 270 eur worth, the newspaper said.
The management board had extended the subscription period for employees by two weeks to last Friday as demand for the tranche was lower than expected, the FTD added.
The final price for the IPO will be set next Sunday, with Postbank’s debut on the Frankfurt bourse on June 21.