Spike Stuck in Australian IPO

Australian-based Internet media company Spike Wireless has ended a particularly inauspicious initial public offering with only a two cent premium on its AUS$1.45 issue price.

Spike's listing on the Australian Stock Exchange coincided with a gloomy day on international financial markets as interest rate fears caused the ASX's All Ordinaries Index to close half a percent down.

The company had sold 24.6 million shares to clients including 3000 retail shareholders, and the first day saw 14.7 million shares sold. The company is now valued at AUS$128 million (US$82 million) with 28.2 percent in public hands.

The performance of Spike carries on a patchy record for Australian companies listing on the ASX, with ecorp, MYOB and Reckon starting with strong premiums, but GPS Online.com and now Spike faring less well.

The Australian floats keep on coming, however. Alice Springs-based betting operator International All Sports closed its offer eight business days early due to excessive demand, and content provider HWW (formerly Horan Wall & Walker) also said its IPO would be oversubscribed.