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Carphone rings IPO success
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July 14, 2000: 5:15 a.m. ET
UK cellular retailer Carphone Warehouse rises after $480M share sale
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LONDON (CNNfn) - Carphone Warehouse PLC made a reasonably successful debut in London Friday, as shares in the country's largest mobile phone retailer rose some 6 percent above their offer price in early trading.
The £320 million ($480 million) initial public offering was closely watched for signs of fatigue among European investors, after a relatively lackluster showing for a number of recent IPOs. The Carphone Warehouse share offer was one of London's biggest IPOs this year.
Carphone Warehouse (CPW) attempted to prevent short-term volatility in the stock by offering a discounted subscription price to investors who signed a promise not to sell the stock for three months. The firm raised £185 million to fund further expansion into continental Europe.
Founders Charles Dunstone and David Ross both cashed in some of their holdings in the IPO, but retain a combined stake of 64 percent. The sale of 20 percent of the firm's equity was priced at 200 pence per share, roughly in the middle of the 170 pence-220 pence per share range, valuing the company at £1.6 billion at the offer price.
The company operates some 850 shops selling cellular telephones and accessories.
France's Vivendi SA was forced to delay the IPO of its water and waste unit in Paris on Thursday and cut the issue price after a disappointing take-up by investors. In the U.K., online bank Egg PLC (EGG), controlled by insurer Prudential PLC (PRU), enjoyed a short-lived increase in its share price after floating in early June, but is now trading below the 160 pence offer price. Several other issues have been canceled.
Granada Media PLC (GME) was split out from lodging and media firm Granada PLC earlier this week in a placing with institutional investors, raising £1.3 billion. The shares have since risen 12 percent. 
--from staff and wire reports
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Carphone Warehouse
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