Reflecting investors’ current disaffection with the dotcom sector, the delayed initial public offering of AOL Latin America has been again reduced in price. Shares priced at $8 each are expected to go on offer via Nasdaq today, less than half last week’s top-end price of $17.
A joint venture with Venezuela’s Cisneros media group, AOL LatAm operates in the region’s three largest markets – Argentina, Brazil, and Mexico. It has yet to launch in the former country where it is expected to go online by the year end; it launched in Brazil last November and in Mexico in July.
AOL competes with a number of longer-established local portals such as Terra, Star Media, UOL and Telmex – and competition is said to be “fierce”. But some analysts believe the company will succeed primarily because of its US experience in developing a mass subscriber base.
News source: Financial Times