Independent News & Media's iTouch subsidiary will have a market capitalisation of about £325 million sterling (€514 million) when it begins trading on the London stock market next month.
ITouch has priced its global share offering at between 100p and 130p sterling and the midpoint of this price range produces the £325 million sterling market value.
ITouch has now started the global offering of its shares and aims to raise about £70 million after expenses to fund its expansion.
None of the existing shareholders are selling shares in the global offering, but Independent's current 66.7 per cent stake will fall to 50 per cent.
The two South African founders of iTouch, Mr Avi Azulai and Mr Wayne Pitout will each see their 27.8 per cent stake fall to 20.8 per cent, while Independent's Australian APN News & Media's stake will fall from 5.5 per cent to 4.1 per cent.
The £70 million proceeds from the share offering - which is being handled by Merrill Lynch, Davy and WestLB Panmure - will fund development of the group's operations in existing and new markets.
ITouch currently provides information services to mobile phone users in Ireland, the UK, Australia and New Zealand as well as South Africa where the company was founded. ITouch had sales of £2.1 million sterling last year but banking sources said that figure does not reflect the business as it stands now after a number of initiatives in recent months. No forecast was given for revenues in 2000.
ITouch is not expected to move into profit before 2002. However, its backers point to strong potential from the rapid growth in the number of mobile phone users internationally and the convergence between mobile devices and the Internet.
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