Spike makes weak splash on ASX
- — 23 July, 1999 21:49
Despite the IPO of Spike Networks being oversubscribed, the Australian Web firm's shares today made a comparatively weak debut on the Australian Stock Exchange (ASX), with gains of only 2 cents per share on closing.
Under the IPO, the company offered 22.5 million shares at $1.45 each, raising $123 million in market capitalisation. The shares closed today at $1.47, but reached a high of $1.69 shortly after the listing at 11:00am.
The application period for shares in the float closed a week early, and being oversubscribed the company decided to downscale the number of shares allocated to each individual from a minimum of 1500 down to 800.
Spike Networks is the second technology company to list on the ASX this week. On Monday, Reckon Software, the maker of Quicken accounting applications, had a strong first day of trading with shares soaring to close at $2.81, a $1.76 premium.