RealTime IT News

LookSmart Closes Book on Popular New Share Issue

Australian-founded search engine developer LookSmart has closed the book build for its supplementary offering of equity on the Australian Stock Exchange three times oversubscribed.

The listing of AUS$266 million (US$165 million) worth of securities, sold by two existing shareholders, is expected to occur at 11am on the 25th of February.

The price of the shares was set at AUS$3 (US$1.86) per CHESS Depository Interests (CDI). The CDI will be exchangeable for LookSmart's existing shares on the NASDAQ exchange at a rate of 20 to one.

LookSmart's NASDAQ-listed shares closed at AUS$66.33 (US$41.13) on Thursday, meaning that the new shareholders could get a premium of as much as 10 per cent.

LookSmart said the 88.8 million CDIs represented about five per cent of the issued capital of the company, which is valued at AUS$5.7 billion (US$3.5 billion).