×

UPDATE 1-Argentina's Corporacion America Airports IPO prices after range cut

(Updates share price; adds market comment, details on company, background on IPOs)

NEW YORK/BUENOS AIRES Feb 1 (Reuters) - Shares in Argentine airport operator Corporacion America Airports slumped below its already slashed IPO price in its market debut on Wednesday, as rising bond yields and Argentina country risk dampened investor interest.

Shares debuted at $17 on Thursday, a day after the company revised the expected price range for its IPO to $17-$19 from a prior $19-$23. The share price dipped after the open and was trading down 2.9 percent at $16.50 at 12:15 p.m. EST (1715 GMT), a session low.

Corporacion America is part of a wave of Argentine companies aiming to list on overseas markets before an expected hike in U.S. interest rates by the Federal Reserve. But U.S. 10-year Treasury yields surged to near four-year highs above 2.75 percent on Thursday, limiting bullishness for equities.

Argentina's country risk, a measure of the average spread of sovereign bond yields compared to a low-risk benchmark, surged nearly 7 percent in January and hit its highest level since mid-December on Wednesday.

"It was not the best timing," said Alejandro Bianchi, investment manager at invertirOnline in Buenos Aires. "In the past few days, rates rose and the market became more volatile."

The company, which reported $1.2 billion in revenue for the first nine months of 2017, operates 37 of Argentina's 56 airports and has other airports elsewhere in Latin America as well as in Armenia and Italy.

Eduardo Eurnekian, the billionaire owner of the Corporacion America holding company, initially told Reuters in 2016 that he was eyeing a New York listing for the airport unit.

Oppenheimer & Co, BofA Merrill Lynch, Citigroup and Goldman Sachs acted as joint bookrunners on the deal, while Santander was co-manager. (Reporting by Rodrigo Campos and Luc Cohen; editing by Chizu Nomiyama and G Crosse)