ITNET Plc, the company formed from Cadbury Schweppes’ computer outsourcing business, is to be valued at 246m when dealings begin on the London Stock Exchange on June 12. A price of 3.50 pounds has been put on each share of the Birmingham UK-based company, valuing it at a hefty 48.5 times prospective 1998 earnings. The valuation of the company is nearly 50m pounds above previous expectations and reflects the market’s insatiable appetite for IT stocks. ITNET was the subject of a management and employee buyout in 1995 with the result that a substantial majority of the 1,500 staff are shareholders and stand to make a big paper profit from the flotation.
