Melbourne IT Hits Record ASX Launch

Australian '.com' Internet domain name registrar Melbourne IT this week recorded the second largest Net float in Australia's history when it opened on the Australian Stock Exchange (ASX).

Melbourne IT opened at a 370 premium to the AUS$2.20 (US$1.45) offer price it nominated when it announced its intention to list on the ASX a month ago. The registrar's AUS$8.21 (US$5.42) opening price eventually peaked at AUS$9.10 (US$6.01).

Melbourne IT issued 42.5 million shares to float 85 per cent of the company, and at its intended offer price it was valued at AUS$110 million (US$72.6 million).

The launch is the largest float by an Australian Internet company on the ASX this year, and is second in size to the June float of ecorp, the online entity of Australian publisher Publishing and Broadcasting Limited (PBL).

Melbourne IT plans to use AUS$6.6 million (US$4.36 million) of the capital raised in the float to establish itself in the US in the first quarter of 2000. The majority of the funds raised though will be spent on reducing the shareholding of its parent company, Melbourne Enterprises International, to 15 per cent.