The UK internet IPO may have come of age, judging by the performance yesterday of Freecom.net Plc, a start-up that hosts web æshopsÆ to SMEs, offering an upgrade path from a free 10-product site to larger, fully-functioning transaction sites. From an offer price of 130 pence, Freecom saw its share price rocket to a high of 347.5 pence at lunchtime, before settling at 291.5 pence, a 124% rise valuing the firm at over 109m pounds ($174m).
Freecom focuses on small and medium-sized companies, offering a completely web-based interface for designing, managing and paying for the upkeep of a shop. All shops are built using Intershop Communications AGÆs line of e-commerce applications, from the low-end ePages to the top-end Merchant.
The Oxford-based company could not have floated at a better time. Interest in technology stocks is increasing rapidly, with the introduction of the TechMark index and a number of high-profile issues such as Freeserve Plc and QXL.com Plc. The Alternative Investment Market, in particular, has seen some massive share price booms in recent weeks.
Meanwhile on the London Stock ExchangeÆs full list, 365 Corporation Plc, a lifestyle content provider company, said it will start trading today. The offer price will be 160 pence per share, the top of the extended range of 150 to 160 pence, valuing the firm at 284.6m pounds ($455.5m). 365 will earn 50m pounds ($80m) net from the offering to spend on expansion. It will be the fourth largest internet IPO this year.
