Euronext said on Tuesday it aims to raise between €880 million and €1.158 billion in an initial public offering which would value the European financial markets operator at up to €1.75 billion.

Euronext's parent IntercontinentalExchange will offer up to 60.15 per cent of the capital of the company in the IPO, or 42,108,230 shares, expected to be priced at between €19 and 25 per share.

A group of institutional investors, which include French banks BNP Paribas and Societe Generale, Dutch firm ABN Amro, Belgian government investment vehicle SFPI, European clearing house Euroclear, and a unit of Portugal's Banco BPI, will take a 33.36 per cent stake in the market operator at a 4 per cent discount to the IPO price.

In addition, a number of institutional investors have committed to purchase 2 per cent of the shares in the IPO, said Euronext, which operates equity, fixed income and derivatives markets in Paris, Amsterdam, Brussels and Lisbon, and has recently received approval to operate as a full exchange by Britain’s financial regulator.

IntercontinentalExchange acquired NYSE Euronext in a $11 billion deal last year, and the US exchange group committed to spinning off Euronext.

European regulators approved ICE’s takeover of NYSE Euronext on condition it kept a 25 per cent stake in Euronext for three years, or found appropriate investors to replace it.

ABN AMRO Bank, JP Morgan and Societe Generale are acting as joint global coordinators for the IPO.

Chief executive Dominique Cerutti told reporters on a conference calls that he planned for a 65 per cent free float, with 10 per cent reserved for sale to retail investors.

The cornerstone investors holding about 1 per cent each are French utility GDF Suez and KBC Bank.

Reuters