LONDON â€" The Spanish telecommunications giant Telefónica said on Tuesday that it would raise around 1.5 billion euros ($2 billion) through the initial public offering of its German business.
The announcement comes as the Madrid-based company is looking to reduce its debt, which currently amounts to about $75 billion.
Under the terms of the listing, Telefónica said it would sell up to a 23 percent stake in its O2 brand in Germany. It has set the price range between 5.25 euros and 6.50 euros a share.
The company plans to sell the shares between Oct. 17 and Oct. 29, with trading set to start on the Frankfurt stock exchange on Oct. 30. Based on the mid-point of the proposed price range, the I.P.O. would give Telefónica's German unit a market value of around 6.6 billion euros.
To entice investors, Telefónica Deutschland has said it will pay a combined 500 million euro dividend to shareholders next year. Its Spanish parent company has canceled its own payout in an effort to reduce costs.
Last week, Telefónica agreed to sell Atento, its call center business, to the private equity firm Bain Capital for $1.3 billion in a bid to raise much-needed cash.
UBS and JPMorgan Chase are managing the I.P.O.
