Shares in iTouch, the mobile phone information group, were traded at a small premium on their debut on the London Stock Exchange yesterday. They opened at 72.5p sterling and moved to 75p when 100,000 shares were traded, or 5p above the initial public offering (IPO) of 70p. However they were mostly traded in the 72.5p to 71.5p range before closing at 71.5p. More than 18 million shares changed hands. This represented more than 25 per cent of the 70 million shares issued under the IPO.
The offer price valued iTouch at £200 million sterling (€323 million). The issue of the new shares raised £49 million for iTouch.
The company raised much less than its initial estimates. The target share price range had been between 100p and 130p but the company said it had been hampered by the absence of any directly comparable company to use as a benchmark and that some institutions were cautious following recent disappointing IPOs.
The company generated sales of £2.1 million last year. It is not expected to move into profits before 2002. Independent News & Media has a 50 per cent shareholding in iTouch.
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