FRANKFURT, April 27 (Reuters) - Laboratory services group Synlab SYAB.DE has priced its initial public offering at 18 euros ($21.76) a share, it said on Tuesday, marking the lower end of a pricing range due to sluggish investor demand.
The deal gives Synlab a market capitalisation of 4 billion euros, making it one of Frankfurt's largest listings in a busy season for stock market flotations that has included Vantage Towers VTWRn.DE and used-car trading platform AUTO1 AG1G.DE . IPO is an important step for Synlab to further strengthen our leading position in the growing diagnostics market," Synlab Chief Executive Mathieu Floreani said.
Synlab cut the size of its IPO after investors questioned the sustainability of earnings, which had spiked in 2020 on the back of strong demand for Synlab's COVID-19 testing capacities.
The company is offering new shares worth 400 million euros plus existing shares worth 271 million euros, excluding an overallotment option. That is down from an original base size of 895 million to 1.03 billion euros.
If the greenshoe option is fully exercised, Synlab's free float will amount to 19%. Other shareholders include funds advised by Cinven CINV.UL , Novo Holdings, Ontario Teachers' Pension Plan Board as well as Synlab founder Bartl Wimmer.
The first trading day is slated for April 30.
($1 = 0.8271 euros)