Navigation firm TomTom debuts on AEX
27 May 2005, AMSTERDAM — The Dutch navigation company TomTom made a successful debut on the stock market on Friday.
27 May 2005
AMSTERDAM — The Dutch navigation company TomTom made a successful debut on the stock market on Friday.
Just 20 minutes after its listing on the Amsterdam AEX, the company's opening share price of EUR 17.50 had jumped to EUR 18.14, a rise of 3.75 percent.
The issue price of EUR 17.50 was on the high side of the EUR 14 to 18.50 price range that was initially proposed. The shares were available from 11am on Friday.
TomTom is issuing 7.1 million new shares and selling 19.6 million existing shares.
The stock market debut is the biggest since the listing of internet firm World Online in 2000, newspaper 'NRC' reported.
The total value of the company is EUR 1.85 billion. The four owners will gain a combined EUR 343 million by the AEX debut, while EUR 125 million will go directly to the company.
However, analysts warned against a high issue price last week. They fear competition in TomTom's market will strongly increase.
TomTom makes GPS-guided car navigation systems. It was founded in 1991 in Amsterdam and now supplies a market extending across Europe, North America and Central America.
Its navigation products are used by close to a million customers in 16 countries and 18 languages.
[Copyright Expatica News 2005]
Subject: Dutch news