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.
