Terra Networks SA, the internet services unit of Spain’s Telefonica SA, became Europe’s largest publicly-traded internet company Wednesday, as its shares enjoyed a warm welcome on both sides of the Atlantic after their initial public offering. Telefonica sold 13% of the unit in Spain at 13 euros each and saw the shares jump 130% from their offering price to 29.90 euros before regulators capped trading under exchange rules.
In after-hours trading, the stock gained a further 23% to 37 euros, giving the company a market value of roughly 10 billion euros – more than twice that of the UK’s Freeserve Plc. In the US, where Terra became the first Spanish company listed on the Nasdaq, the company’s American depositary receipts rose more than 300% from their offering price of $13.41 to hit $54.50. After a late selloff, the shares still closed the day up 194% at $38.25 and traded no lower than $35.50.
