QXL.com, the largest
Internet auction company in the UK, has set the offer price of its shares near the top end of the range at 195p each (approx. $3.20).
As part of the offering, QXL.com has allocated 28 million new shares
to institutional and retail investors, announcing Thursday that they
were more than eight times oversubsubscribed.
The initial price values QXL.com at around £263 million ($421 million),
prior to trading on the London Exchange, scheduled to commence at
8.00 am on Thursday, October 14.
The recent share offer of around 25 per cent of the company’s shares
was open only to investors in the UK. Shares will also be offered in
the United States in a separate issue.
With the offer heavily oversubscribed, many small investors may
be disappointed with the size of their allocations. Successful
applicants will have their certificates mailed to them on
October 14.
QXL.com has supported its offering with a major advertising
campaign in the UK. Formerly called Quixell (to sound like
“Quick Sell”), then QXL, it has finally settled for QXL.com plc
and is already one of the most recognisable Internet brands
in the UK.