Freeserve Shares Up 45 Percent on Debut
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Shares in Freeserve traded at 45 percent above the launch price, quickly reaching 220p ($3.52), some minutes after trading started in London and on the Nasdaq.
Around one-fifth of Freeserve was floated by its owner, electrical retailer Dixons, at a price of 150p ($2.40). Institutional investors took the bulk of the shares, which were oversubscribed 30 times.
Freeserve closed in London at 205-1/2 pence, a premium of 37 percent.
The launch of Freeserve sees the first major Internet stock to come to market in the UK, and will be regarded as a benchmark for future IPOs.
In just a few months, Freeserve attracted over a million users of its free Internet service -- but has also lost hundreds of thousands of users in a very high "churn rate" following the launch of other free ISPs in the UK.