ASM Brescia, the Italian municipal utility firm, is determined to brave adverse market conditions and press ahead with its flotation on July 12, even though this has meant dropping its price substantially.

Around a third of the offer was taken up by retail investors, in a slight increase on the 30% tranche originally made available. Italian offerings have struggled to stimulate retail demand in the last year. Even Campari - a strong consumer brand name - failed to attract the expected level of interest for its initial public offering, and Snam Rete Gas, the gas distribution company which floated in December 2001, was unusual in proving a hit with retail investors.