LetsBuyIt.com, a leading online retailer in Europe, this week cut the issue price of shares in its planned initial public offering to between €3 (£2.36) and €4 from between €6 and €7 due to the difficult market environment. The issue is expected to prove a test of European investors' confidence in Internet and e-commerce stocks after the collapse in "new-economy" stocks in April.
Originally, the company's shares were due to be listed on the Frankfurt Neuer Markt for high-growth stocks from Wednesday, but the subscription period will now probably close today. The reduced issue price means the offering will probably raise only €53.4 to €71.2 million instead of the €100.2 to €116.9 million originally expected.
LetsBuyIt.com had announced at the end of June that it would press ahead with the flotation after postponing it in the face of the recent turmoil in the market for Internet stocks. LetsBuyIt.com, set up by a Swedish national and headquartered in London, seeks to offer lower prices by bringing together large numbers of buyers. It said the number of customers rose to 625,000 in May, an increase of 30 per cent on the figure for April.
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