Trivago, the hotel search platform that is majority owned by online travel firm Expedia (expe), raised $287 million in an initial public offering on Thursday, far below expectations, according to a person familiar with the matter.
The underwhelming pricing of the Düsseldorf, Germany-based company’s offering reflects some concerns among investors, in a challenging year for technology IPOs, that it may be too reliant on a few online travel companies for its revenue.
Trivago priced 26.1 million American depository shares, or ADS, on Thursday, fewer than its planned 28.5 million. At $11 an ADS, the pricing was also below its indicated range of $13 and $15, the source said, asking for anonymity become the details are not yet public. Expedia and Trivago did not immediately respond to a request for comment.