KARLSRUHE/BERLIN (dpa-AFX) - Internet service provider and telecoms group United Internet plans to list its hosting subsidiary Ionos on the Frankfurt Stock Exchange in the first quarter of 2023. The initial public offering (IPO) is to include existing shares held by United Internet and U.S. investment firm Warburg Pincus, Ionos announced Tuesday. After the IPO, the parent company intends to continue to hold a majority stake in Ionos. United Internet's share reacted positively to the announcement: In early trading, the share price rose by a good two percent.

An IPO is the "next logical step", said United Internet CEO Ralph Dommermuth, according to the release. The Group holds around three quarters of the share capital, while Warburg Pincus owns just under a quarter. Through the IPO, Ionos hopes to grow faster and strengthen its brand.

According to the company, it is currently represented in 18 markets in Europe and North America and focuses its web hosting and domain services primarily on small and medium-sized enterprises. These increasingly wanted to present themselves on the Internet.

Ionos generates around 90 percent of its revenue with offers for domains, web hosting and e-mail. The company generates the rest of its revenue with cloud storage. Ionos generated total revenues of around EUR 1.1 billion in 2021, just under one-fifth of United Internet's consolidated revenues. As reported by news agency Bloomberg in December, United Internet hopes to achieve an Ionos valuation of up to five billion euros with the IPO.

With its initial listing, Ionos is also bringing some movement to the European market for IPOs after months of radio silence. United Internet had already announced its intention to list Ionos in September. At the time, there was only general talk of 2023. In recent months, high inflation and rising interest rates had weighed heavily on share prices in general, bringing the market for IPOs to a virtual standstill./ngu/tav/jha/