RealTime IT News

Lycos Claims Success for European IPO

Despite shares dipping below the issue price Wednesday, Lycos, Inc. claimed success for its European IPO, saying it raised $649 million on the Neuer Markt in Germany.

Immediately following the launch, shares in the joint venture with Bertlesmann dropped to 22.10 euros ($21.50), but later recovered slightly.

Like lastminute.com which suffered a much steeper fall after its IPO, Lycos Europe had set its share price at the top end of its pre-announced range, effectively preventing speculators from reaping early profits.

At the close of trading yesterday, Lycos Europe was valued at more than $5 billion, by any standard a success for existing Lycos shareholders.

Bob Davis, president and chief executive officer of Lycos, said the company's strategy of partnering with local market leaders had allowed it to deliver high-quality local sites very quickly.

"Our European IPO is another key milestone in our ongoing globalization strategy, and we expect Europe to be just the first step in the unveiling of these assets to our shareholders," said Davis.

Other joint ventures being undertaken by Lycos include those in Japan with Sumitomo and other companies; Korea with Mirae Corp.; Singapore with Singapore Telecom; and Canada with Bell Canada.

Lycos says it has plans to deliver localized sites in many Asia-Pacific countries, including China, India, Singapore, Taiwan, Hong Kong and Malaysia. It says it will launch its joint venture site in Canada in May this year.