Telenet makes disappointing stock debut
11 October 2005, BRUSSELS — Flemish cable and telecoms firm Telenet made a disappointing debut on the Euronext Brussel stock market on Tuesday
11 October 2005
BRUSSELS — Flemish cable and telecoms firm Telenet made a disappointing debut on the Euronext Brussel stock market on Tuesday
At about 4.05pm, the share price was listed at EUR 19.45, some 7.38 percent below its introduction price of EUR 21.
More than 9.1 million shares were traded, financial newspaper 'De Tijd, reported.
"We often see a high volume and a small dip of the first day of a stock debut. Let's wait for the following months," Telenet director Duco Sickinghe said.
The introduction price of EUR 21 was on the underside of the estimated price range of EUR 21 to EUR 25.50. Market capitalisation will amount to about EUR 2.1 billion.
"We are one of the best valued cable companies in the world. So I cannot be anything other than satisfied," Sickinghe said.
However, the low debut price and the large allocation of shares to private investors have raised questions about the so-called high demand for Telenet shares.
After the internet bubble at the end of the 1990s, investors appear to be more cautious.
[Copyright Expatica News 2005]
Subject: Belgian news