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AOL’S DELAYED IPO PRICE CUT YET AGAIN

News, 08 August 2000


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