Tuesday, the shares of Telefonica's O2-branded German unit saw an increase by 3%, as per a recent report. The rise was seen probably in the wake of a biggest initial public offering by Europe in more than a year.

Also, a fledgling recovery was seen in the new issues market of the region. It is being said that the offering would help in raising some €1.45-billion, which would further help Spain's Telefonica to bring a cut in its huge debt.

The company has told that a 23-per-cent stake was being sold by it in the smallest mobile operator of Germany. The same also included an overallotment option, worth some €5.60 a share. It has also told that as compared to the original €5.25-€6.50 range of Telefonica, the price was amid the lower half.

The report says that the offering would prove to be a positive approach for an IPO market. Since, it has struggled for many months as a result of Europe's debt crisis. Also, the slow economic growth in the nation was partly responsible.

"We have seen a re-emergence of some sort of IPO market. The recent transactions, the fact they have gone well, is clearly presenting a positive backdrop", said a banker.