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RealTime IT News

Chaos Stops Orders for Australian IPO

Online music retailer ChaosMusic has continued the good run of Australian Internet stocks by closing its share offering early due to high demand.

Chaos closed its offering on December 1 and will set its listing price at AUS$1.40 for its float later this month, valuing the company at AUS$39.1 million (US$25 million). The company said the weighted average price for bids on its online book build, which is only the second performed in Australia, closed at AUS$1.47, at the high end of the $1 to $1.50 indicative price range.

Some of the proceeds of the float have already been used to acquire Melbourne-based "bricks-and-mortar" retailer Gaslight Records. Jeff Harrison, formerly of Gaslight and now chief operating officer at Chaos, said the company had huge potential.

"We are well on the way to providing the most efficient one stop source of Australian supplied product for online customers," he said.

Chaos will have to live up to the wildly successful float of Australian rival Sanity, which doubled its listing price in its float late last month. Sanity's success came in spite of, or arguably because of, a string of publicity about security holes in its Web site which had allegedly opened a loophole for users to avoid paying for ordered products (see article).