RealTime IT News

Spike's IPO Looks Sharp for Australian Investors

Australian Web production firm Spike Networks is considering closing its share offering early after 1,800 applications in its first week.

Spike, which will list on the Australian Stock Exchange, said its directors had asked underwriter Salomon Smith Barney and brokers Hartley Poynton, Ord Minnett and E*Trade Australia to consider closing the offering as early as July 16, instead of July 22 as quoted in the prospectus.

Chris O'Hanlon, Spike CEO, said the interest in the float was partly sparked by the fact that the process for lodging funds was made completely electronic through the Australia-developed BPay system.

"The response to the innovation also demonstrates how readily Australians are adapting to new Internet applications," he said.

The float will raise up to AUS$35.67 million (US$23.8 million) for further expansion of Spike's multimedia development operations, which have already extended out of its Sydney base to the US and Japan.

The application used by investors to fill out the prospectus form and send funds over the Internet was developed by Spike, Salomon Smith Barney, Baker & McKenzie and Computershare. The last of these, an Australian financial software vendor, will offer the software for use in future Australian IPOs.