Yes TV unveils proposals for £800m flotation

Yes Television, which plans to roll out video-on-demand services for broadband networks, yesterday unveiled plans for a flotation that will seek to value the company at over £800m.

Yes Television, which is currently offering services through Kingston Communications in Hull and is launching trials with Briitsh Telecom later this month, plans to sell 81 million shares in a range of 225p to 275p. At the mid-price of 250p that would see the company raise about £202m for rolling out its services in Britain and overseas.

"We're actually changing the nature of TV in a fundamental way," said Thomas Kressner, chairman and chief executive. "It's the first paradigm shift since TV was invented."

Using Yes Television's system, consumers will be able to watch movies on demand. The technology allows a movie to be stopped, rewound or put forward.

The company also has developed an internet protocol-based software platform to improve users' ability to interact with their TV sets. Content from the web will also be rerendered to allow limited surfing through conventional TV screens.

Crucially, Yes Television's service provision will depend on BT's ability to roll-out digital subscriber line technology. DSL services are expected to become available in Britain's major cities by late June, spreading to around three-quarters of the country's 25 million households by 2002.

Robert Fleming is advising on the flotation. The offer will be open to institutional investors overseas as well as to institutions and retail investors in Britain from today.