Spanish lender Bankia has slashed the amount it expects to raise from its initial public offering to €3.1bn after cutting the price to €3.75 a share in response to challenging market conditions, people close to the transaction said on Monday.

Bankia had been aiming to raise around €4bn at an earlier price range of between €4.41 and €5.05 a share. With a potential overallotment, it could now raise €3.4bn in total.