FRANKFURT, June 26 (Reuters) - The initial public offering for German diesel engine maker Tognum has been fully taken up three days ahead of the end of the subscription period, sources close to the matter told Reuters on Tuesday.
"The issue is oversubscribed," one source said, adding that all 86.25 million shares on offer had found a buyer.
Tognum shares were trading at 24.50 euros to 25.50 euros in the grey market , at the upper end of the IPO price range of 22 to 26 euros.
"Demand in the grey market would justify a pricing at the upper end of the bookbuilding range. But an issue price at 24.00 to 24.50 euros would be advisable considering the markets' volatility," Norbert Empting, a trader at DKM, said.
Tognum aims to raise up to 2.24 billion euros ($3 billion) in what would be Germany's largest IPO since Deutsche Post AG floated in 2000.
With the proceeds from the IPO, the engine maker plans to reduce debt and is considering acquisitions in Europe and Asia.