Azimut, the Italian fund manager, has seen the value of its initial public offering hit by uncertainty over the group's future fee income.

Merrill Lynch and UBM, the Italian investment bank, are leading the flotation, which values the company at around €645m ($779m) compared with earlier estimates of between €750m and €1bn. The issue represents a 75% free float and shares are due to start trading in Milan on July 7.