IPO Watch: Trivago Going Nowhere Fast?

(RTTNews) - Hotel-search platform Trivago N.V., majority owned by online travel agency Expedia Inc. (EXPE), has priced its downsized initial public offering below the projected range.

The Germany-based company on Thursday priced its IPO of 26.1 million American Depositary Shares or ADS at $11 per share. Earlier, it had expected to offer 28.5 million ADS in a range of $13 to $15 per share.

Trivago said it is selling 18.1 million ADS in the offering, while its shareholders are selling about 8 million.

Trivago's downsized offering comes amid a bad year for IPOs this year. In fact, 2016 was the slowest for IPOs in the U.S. since 2009.

The IPO volume has been low this year due to the U.S. presidential election, worries about Brexit, easy availability of private capital, and uncertainty about a rate hike by the Federal Reserve, among other factors.

Trivago expects to use its share of the IPO proceeds, estimated at about $183 million, to increase its financial flexibility and for other purposes.

Trivago will continue to be controlled by its biggest shareholder Expedia Inc. after the IPO. Expedia acquired a 62 percent stake in Trivago for 477 million euros in 2012.

As of September 30, 2016, Trivago's global hotel search platform offered access to approximately 1.3 million hotels in over 190 countries. Trivago's platform can be accessed globally via 55 localized websites and apps in 33 languages.

Trivago's shares will list Friday on the Nasdaq Global Select Market under the ticker symbol "TRVG." The company's IPO is expected to be the last U.S. IPO of 2016.