Feeds

Freeserve soars in first day trading

Text-book IPO

  • alert
  • submit to reddit

Build a business case: developing custom apps

Hats off to Dixons and its serried ranks of financial advisors for getting away (with) the Freeserve IPO. Shares catapulted nearly 50 per cent on the first day of trading, valuing Freeserve at an astonishing £2.2 billion. Astonishing because Freeserve turns over much less than £10 million and loses money, its customers don't spend very much time staying on its Web site, and prospects for overseas growth are somewhat limited because competitors are copying its business model in other European countries. Also astonishing because Freeserve's placing price of 150p was already at the high end of the pre-float spread indicated by Dixons. The electricals retailer could charge this because the offer for 20 per cent of Freeserve shares was oversubscribed by more than 30 times. Therein lies the key for the first day madness. Freeserve is now Europe's biggest pureplay Internet stock, and it has got investors -- institutional and retail -- excited. The scarcity value of Freeserve stock has ensured a wildly successful float, as we predicted, oh, weeks ago. All the company has to do now is justify its share-price. And that means buying wisely. ®

Boost IT visibility and business value

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.