Morse debut on London exchange
Wednesday 24 March 1999
Morse shares, which were placed with institutional investors at 250p each, rose 2p to 252p in conditional dealings. Morse had planned to price the shares, which do not start trading fully until next Tuesday, at between 250p and 300p.
Analysts said the flotation had been hampered by signs of a slowdown in the computer market in the United States, fears of a second-half slowdown in the UK, and the poor performance of Synstar, the computer services group, after its flotation last month.
However, observers said the low price attached to Morse shares meant that they were likely to perform well in the next year.
As a result of the lower price, 3i and PPM Ventures, Morse's venture capital backers, decided to hold on to more of their shares. Some fund managers had complained that the investors were selling too large a stake.
At a share price of 250p Morse is valued at pounds 305.7m. The flotation raised pounds 60m in new money for the company, which it will use to pay down debt and help fund its recent acquisition of a minority stake in Partner System, a French reseller.
Duncan McIntyre, the chief executive, said the group's main priority was to use its position as the leading reseller of Sun Microsystems servers to expand its operations in France and Germany.
"We want to become a European company and start exploiting our services business, which is currently only 5 per cent of revenues," he said.
Analysts said Morse is more vulnerable to fluctuations in demand than services groups, which tend to have stable order books.
However, they pointed out that, on a multiple of 23 times earnings for the year to last June, the shares look an attractive prospect.
- 1 Israel-Gaza conflict: 'When Genocide is Permissible' article removed from The Times of Israel website
- 2 Pope Francis issues top 10 tips for happiness
- 3 Disney heiress Abigail disowns her share of family profits in West Bank company
- 4 The secret report that helps Israel hide facts
- 5 Israel's propaganda machine is finally starting to misfire
Lost portraits of the Somme: 100 images of Tommies posing before they went over the top. Now can you help to identify them?
Israel-Gaza conflict: 'When Genocide is Permissible' article removed from The Times of Israel website
Mystery of the Siberian holes at the end of the world 'solved': Scientists offer explanation
Pope Francis issues top 10 tips for happiness
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...
£500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...
£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...