Copenhagen, May 26 - Danish food ingredients maker Chr. Hansen's initial public offering is expected to be priced at the low end of the indicated range after recent stock market falls.
"In my view, a fair value is now at 92-94 crowns," said Alm. Brand analyst Michael Friis Jorgensen, who a week ago expected a price around of 100 crowns.
Chr. Hansen said on May 19 it aimed to raise a net 3.16 billion Danish crowns ($522 million) in the IPO, offering new shares in a 87-117 crowns range.
Since then, the Copenhagen bourse blue-chip index has shed around 7 percent, and domestic rival Danisco has lost 11 percent.
The book building opened on May 25 and runs to June 2 at the latest.
If markets and the Danisco shares continue to fall, the price will near 87 crowns, Jorgensen said.
European shares fell to their lowest close in nearly nine months on Tuesday amid worries austerity measures to be taken in European economies would hurt growth.
Jyske Bank analyst Jens Houe Thomsen said it would take a substantial further market dive to make Chr. Hansen's current owner French private equity group PAI Partners decide to put the offer on hold.
"Unless there are further drastic falls, I believe they will go through with it, at a price I believe will be below 100 crowns," he said, adding he would recommend clients to take part at a price below 100 crowns.
ABG Sundal Collier analyst Frans Hoyer also said he expected a price below 100 crowns, and that the shares were attractive at that level.
Chr. Hansen, which makes cultures, dairy enzymes and natural colours for the food, health and animal feed industries in around 140 countries, was de-listed in 2005 when it was bought by PAI Partners, which plans to keep a majority stake in the firm.
The planned listing marks a thaw in the Danish IPO market. The latest major listing in Copenhagen was that of insurer TrygVesta in 2005.
Another Danish firm, ambulance services group Falck, also plans to rejoin the Copehagen bourse.
Danish telecom group TDC is also expected to offer shares this year, a deal likely to be larger than the Chr. Hansen or Falck offerings.
Though TDC has remained listed after a 2006 quasi-buyout, the stock is illiquid so an offering would be seen by many as a "reintroduction" to the bourse.