LetsBuyIt.com, an internet auction site that cuts sales prices
as interest rises, has delayed its floatation on Frankfurt’s Neuer
Markt for a second time. The delay came after the company cut its
share price from between E6-E7 to E3-E4 in an attempt to raise
investor interest. The initial public offering is now scheduled for
14th July.
The company had originally intended to float last month with
shares hoped to sell at the much higher rate of E15. However, that
attempt was abandoned amid criticisms that it had been too lavish
in its expenditure, which included the cost of funding a staff ski
trip.
When the new date for floatation was set Peter Jaco, the UK
managing director, commented that, “the reason we have come back to
the market so soon is the absolute level of interest in us from the
investment community... We have set the price at a very realistic
level.”
Despite this optimism it appears that the company has failed to
attain the level of interest it had hoped for in Germany and Sweden
where its shares are being offered. This was shown by the low level
of bidding from private investors yesterday which only reached
E5.50.
The experience of LetsBuyIt.com can be partially attributed to a
general air of caution in internet company investments in recent
months.
