(Updates with final IPO price)
MADRID, Feb 2 (Reuters) - Spanish property developer Metrovacesa on Friday set the final price for its stock market listing at 16.5 euros per share, the bottom end of its indicative range, valuing the company at 2.5 billion euros ($3.11 billion), down from a previous estimate of up to 2.95 billion euros.
The pricing at the bottom end of the range and a one day delay in the listing, which will be on Tuesday, is a negative sign for the first new listing this year in the property sector which has attracted a large part of Spain’s foreign investment in the past few years.
The company was forced to cut its indicative price range after it struggled to find investor demand for the listing, which is the first since Catalonia’s political crisis came to a head when the regional government declared independence.
Around a fifth of Metrovacesa’s assets are in Catalonia.
The final price sat at the bottom of the adjusted range of between 16.5 and 17 euros, which itself was cut on Thursday from an initial range of 18 to 19.5 euros.
Residential construction in Spain is thriving with foreign investment pouring into developments in cities and coastal resorts, a decade after a property bubble burst leaving banks laden with developers’ bad loans.
House builder Neinor Homes listed last year, the first flotation by a Spanish residential builder in a decade.
Metrovacesa was taken over by creditors Santander and BBVA in 2009. The banks are selling stock in the company as part of the listing although they will remain majority shareholders.
BBVA, Santander, Deutsche Bank and Morgan Stanley are acting as the joint global coordinators and joint bookrunners for the offer, while Goldman Sachs and Societe Generale are acting as additional joint bookrunners. (Reporting by Sonya Dowsett and Paul Day; editing by Jason Neely and Jane Merriman)