Hapag-Lloyd is pricing its initial public offering (IPO) at the low end of a revised range, giving the group a market capitalisation of about 2.4 billion euros ($2.6 billion) or less than half the original target, two people familiar with the deal said. Hapag-Lloyd shares are being sold at 20 euros ($21.92)apiece, they said after order books for the shares closed. The company had originally targeted a market cap of more than 5 billion euros, but in wobbly markets offered shares for 23-29 euros each. On weak demand, it later postponed the IPO, trimmed the number of shares on offer and lowered the price range to 20-22 euros. Several large investors had cancelled share orders after a profit warning from peer Maersk rocked already jittery markets. Maersk Line, the world’s largest container shipping company which transports a fifth of all goods on the busiest routes between Asia and Europe, has been hit by overcapacities and a slump in freight rates. Hapag-Lloyd is also suffering from the slowdown in global trade, but it is less exposed to the Asia-Europe route than Maersk and other peers as it focuses on the Europe-North America routes, which have benefited from a strong U.S. dollar. Amid volatile markets, several other German groups recently also curbed their capital-raising ambitions, like plastics maker Covestro and automotive supplier Schaeffler. Hapag-Lloyd is raising $300 million from selling 13 million new shares, while Shareholder TUI is offering 2 million shares in an over allotment option. Part-owner Klaus-Michael Kuehne and Chilean partner CSAV placed orders worth $30 million each. Hapag-Lloyd plans its market debut for Friday, Nov 6. (Reuters)