Following two postponements of its initial public offering on Frankfurt’s Neurmarkt, troubled e-tailer LetsBuy It.com came up trumps with investors on its delayed debut last Friday. In the early hours of trading, its shares gained 84% in value, providing a much-needed boost in confidence for the firm’s directors and staff.
Having last week halved to 3.50 each the asking price for its shares [WAMN, 13-Jul-00], Letsbuyit whetted the market's appetite, with strong interest from big institutional investors driving the surge in share price from 3.50 to a peak of 6.45. Said one Hamburg analyst: “The amount of speculators buying the stock is high - it's a very innovative firm and was very cheaply priced."
Despite the new-found euphoria surrounding the venture, analysts predict that Letsbuyit will remain deeply in the red until 2003. Operating losses are expected to exceed 200 million before it turns the corner.
The British-owned company is registered in Sweden and headquartered in Amsterdam. It operates in fourteen countries and twelve languages across western Europe.
News source: BBC Online Business News (UK)