Telefonica Germany starts trading above offer price

FRANKFURT, Oct 30 (Reuters) - Shares in Telefonica's O2-branded German unit started trading above their initial public offering price on Tuesday, in Europe's largest new listing in more than a year.

Shares started trading at 5.70 euros at 0824 GMT, about 1.8 percent above the offer price. By 0830 GMT shares traded at 5.72 euros.

On Monday, Telefonica priced the sale of Telefonica Deutschland shares at 5.60 euros apiece, in the lower half of its indicative range, raising as much as 1.45 billion euros ($1.87 billion).

The biggest IPO in Europe since Spain's Bankia raised 3.1 billion euros in July 2011 is part of Telefonica's bid to cut debt and keep its investment grade rating.