US stock market operator ICE has begun spinning off the pan-European market Euronext in an operation which could raise 1.75 billion euros ($A2.62 billion) and will leave three main operators fighting for business in Europe.
ICE said on Tuesday that shares in the newly floated entity would be issued at 19-25 euros, valuing Euronext at 1.33-1.75 billion euros.
The issue is backed by hard-core investors, and the guide valuation is in line with estimates by analysts.
The operation will re-draw the European landscape which will be dominated by Euronext, the German Deutsche Boerse in Frankfurt, and the London Stock Exchange which operates the markets in London and in Milan.
Euronext, which operates the Paris, Amsterdam, Brussels and Lisbon stock markets, said it intends to develop its traditional cash payment trading activities, but also business in derivative instruments and in information services.
It intends to reduce costs by about 60 million euros in the next three years in order to raise annual turnover by about 5.0 per cent in the medium to long term and to achieve a gross operating margin of about 45 per cent.
"We are delighted to launch the IPO (initial public offering) of Euronext with such strong commitment from leading institutions across Europe, a recognition of Euronext's potential as a leading pan-European exchange group," Euronext chief executive Dominique Cerutti said in a statement.
"Euronext's role in supporting the real economies of Europe will be further strengthened by our independence..."
With the IPO, the company returns to being an independent company, having been acquired in 2007 by the New York Stock Exchange.
NYSE Euronext was then bought by the InterContinentalExchange (ICE) in 2013, but ICE was not interested in the European activities.
Euronext in the first place, was the result of a series of mergers around the Paris stock market which wanted to create a pan-European exchange.
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