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Price boost for Internet IPO
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November 8, 1999: 4:48 a.m. ET
ScottishPower hikes offer price for online unit Thus due to strong demand
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LONDON (CNNfn) - ScottishPower raised the price at which it will offer shares in its Internet unit by 12 percent Monday, citing better-than-expected investor demand.
The initial public offering of Thus, formerly known as Scottish Telecom, will value the company at between £2.14 billion and £2.29 billion, with an expected price range of 300-325 pence per share.
ScottishPower, Britain's second-largest electricity utility by market value, had previously indicated Thus would be worth up to £2.05 billion. It will set the final offer price on Nov. 10.
A spokesman for the company said interest among U.K., continental European and U.S. investors was strong, with particularly heavy demand from British institutions.
Scottish is selling 49 percent of Thus, which owns Demon Internet, one of Britain's largest Internet service providers. Thus also operates call centers and carries data services over its network.
The telecom sector has been in strong demand on the London stock market recently. An industry insider said shares in comparable companies to Thus have gained recently, boosting interest in the company's IPO.
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ScottishPower
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