US community web site operator Xoom.com Inc has begun trading on the European hi-tech stock market Easdaq, closing at $76.60, a 9.8% increase on the opening price.
The European trading debut coincided with the completion of the San Francisco-based company’s secondary offering of 4 million common shares, half of which were offered by the company, the other half by existing shareholders. Xoom plans to use the cash infusion to develop new e-commerce channels, expand operations internationally and build its brand, in addition to making potential acquisitions or minority investments.
The domestic offering was managed by Bear Stearns & Co Inc, Hambrecht & Quist LLC, and BancBoston Robertson Stephens, with Wit Capital Corp as e-manager, while the foreign sale was handled by the same group, plus Deutsche Bank AG London. The company now has 16.1 million shares outstanding.
Laurent Massa, CEO of Xoom.com, explained that the company wanted to be quoted on a European market because the internet is currently growing faster in Europe than anywhere else in the world.
Xoom is the second US community web site operator to go for a European listing this year. New York-based FortuneCity.com Inc debuted on Frankfurt’s small cap exchange, the Neuer Markt, last month, becoming only the second purely internet stock to list there (CI No 3622).
