Letsbuyit.com is due for the stock market flotation it craves this morning, albeit at the third attempt and with a vastly reduced value.

The London-based online retailer originally sought to list on Frankfurt's Neuer Markt for around 1bn euro (£625m) but yesterday announced an expected valuation of about 310m euro, reflecting declining investor enthusiasm for internet retailers.

Last week Letsbuyit was hoping to issue shares at 6-7 euro each but will now place 17.8m shares at 3.50 euro, raising around 62.5m euro. It had intended to raise double that amount.

The fundraising will take Letsbuyit's cash reserves to around 77m euro, giving it 12-15 months before it needs to raise more money, a spokeswoman said.

Martin Coles, the chief executive, acknowledged that the market would be keeping a watchful eye on Letsbuyit's financial performance. "Our performance will be scrutinised and evaluated by the public, and we relish the opportunity to prove our mettle."

Letsbuyit arranges for consumers to pool their buying - and bargaining - power for goods such as TVs and personal stereos. It relies heavily on marketing to draw in customers and wants the cash to boost its firepower.

It is not expected to turn a profit until 2003. Sales are expected to rise to 734m euro by then, from 48.8m euro this year.