Thus achieves pounds 2.4bn price tag as shares surge to 9% premium
Thursday 11 November 1999
That valued the company at nearly pounds 2.4bn, demonstrating again the market's enduring appetite for telecoms stocks in the early stages of their business development. After floating at 225p in July, Kingston Communications closed at 585p last night, while RedStone Telecoms, floated last month, has more than doubled in value.
Thus soared to 385p in the opening 15 minutes of trading, but faded later in the session to close at 336p in extremely heavy volume of 150 million shares.
Scottish Power floated 49.9 per cent of the company in the issue, which was nine times oversubscribed. The float, co-ordinated by Goldman Sachs, raised about pounds 1.1bn, including pounds 327m from new shares.
The float vindicated Goldman's move to up the value of the initial public offering during last month's book-building. Money raised from the issue will be invested in developing Thus's network, paying off intercorporate loans and improving the content of Demon Internet, its Internet service provider.
"A lot of people bought into our strategy and the plans we have to make it a reality," said Thus chief executive Bill Allan. "We had no reservations about raising the asking range given the fantastic demand and expectation that the stock would trade higher."
Analysts believe that Thus, like Kingston Communications, will be pursued by tracker funds once it is among the FTSE 250 index of mid-cap stocks.
Demand for the stock could also be boosted by the FTSE Equity Indices Committee's decision last night to allow the telecoms start-up to qualify as a fast entrant to the FTSE techmark 100 index
- 1 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 2 Miley Cyrus' homeless MTV VMAs date, Jesse Helt, is wanted by the police
- 3 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
- 4 Homer Simpson has taken the ALS ice bucket challenge because of course he has
- 5 Do you realise just how foolish the UK looks?
Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
Gun instructor accidentally shot dead by nine-year-old girl with Uzi gun
Miley Cyrus' homeless MTV VMAs date, Jesse Helt, is wanted by the police
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
The 13 obscure UK laws you didn’t know you were breaking
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Jeremy Clarkson is a cultural tumour and needs to be removed, says comedian Frankie Boyle
Do you realise just how foolish the UK looks?
- < Previous
- Next >
iJobs Money & Business
Negotiable: Harrington Starr: A fast growing Financial Services organisation b...
£50000 - £60000 per annum + excellent benefits: Harrington Starr: An award-win...
Negotiable: Harrington Starr: DevOps Engineer - (Linux, Shell, Bash)DevOps Eng...
£500 - £700 per day: Harrington Starr: Calypso Developer Calypso, J2SE, XML, ...