[Sydney, Australia, May 12, 2000] — Web site and magazine publisher Terraplanet has braved both post
Budget and Nasdaq-based tech stock shakiness to debut on the Australian Stock Exchange.
The publisher unleashed more than 760,000 shares in its listing, opening
at AUS$0.42 (US $0.26) and reaching a high of AUS$0.60 (US$0.36), before
closing as AUS$0.536 (US$0.32).
The listing follows more than 3000 initial applications for shares.
Terraplanet’s board eventually decided to limit acceptances to AUS$21.5
million (US$12.9 million), giving the company a market capitalization of
AUS$81 million (US$48.6 million).
The response from aspiring shareholders was a positive one given the
recent climate surrounding IT stocks, although Terraplanet managing
director Lesa-Belle Furhagen said it was the company’s established base in
magazine publishing that made a difference.
“We are offering a hybrid stock, and have a history with advertisers
that dot com start ups don’t have to draw on,” said Furhagen.
“The response is a result of a combination of online initiatives and our
existing offline properties which are already showing real turnover and
profits,” added Terraplanet chairman John Spira.
These offline initiatives include a number of publications in
particularly in the youth market, including Juice, HQ and Recovery
magazines. It also produces the Australian
Broadcasting Corporation‘s 24 Hours magazine and architectural
publication Monument.
The company has so far launched the juice.net youth portal site as an online
spin off of Juice, and Ms. Furhagen said that this would be indicative of
Terraplanet’s strategy in the wake of its listing.
“We will use the capital raised through the float to launch a network of
sites, and to buy and launch more magazines,” said Furhagen. “Our offline
publications are important, and will remain core to our growth.”
As well as creating spin off sites of successful publications,
Terraplanet also intends to create online-only media properties that will
be targeted at the youth market. The company is also exploring expanding
its reach through these sites to other sectors, although it has not yet
defined in what specific directions it will head.
Ms. Furhagen said that these sites will appear over the next 12 months,
with the first to launch in the next four months.
Terraplanet will also continue to explore content partnerships such as
the alliance it has already established with Yahoo! Australia & New Zealand,
recruitment site Seek Communications
and clothing retailer General Pants.
