Skrill cuts back IPO in final hours

Online payments company Skrill has cut its IPO back ahead of the book closing later today.

The deal was set to raise £80m for the company, previously known as Moneybookers, and £80m for existing shareholders.

However, the secondary portion has been slashed to £30m, making the deal worth for a total of £110m, the International Financing Review (IFR) reported.

Price guidance remains 235p–335p, which values the company at £315m–£415m.

The book closes at 3pm this afternoon.

Moneybookers and has been cast as a European rival to PayPal, is in the final stages of drumming up interest in the listing.

Volatility driven by unrest in the Middle East and the Japanese quake and tsunami has hit investor confidence, while firms are also said to be at the mercy of investors who refuse to meet management’s price demands.

The deal has suffered after Perform, another UK internet company, dropped more than 19 per cent since pricing last week.

Jefferies and Morgan Stanley are joint global co-ordinators and Bank of America Merrill Lynch is joint bookrunner, on the Skrill float.