*EBOOKERS.COM <EBKR.O> OPENS UP 18 PTS AT 36, UP FROM $18/SHR IPO
PRICE
NEW YORK, Nov 11 (Reuters) - Online travel service firm ebookers.com plc ADRs, or American Depositary Receipts, climbed about 65 percent after its $18 a share offering.
The London-based firm raised $61.2 million after pricing 3.4 million ADRs at the top of its upwardly, expected price range. It had initially expected to price deal in a range of $13-15. Each ADR is equivalent to one share.
The deal, led by JP Morgan Securities, represented a 20 percent stake in the firm.
Its ADRs were up $12 at $30 on the Nasdaq in late morning.
"It was Expedia Inc. <EXPE.O> Jr., but it didn't have the same pedigree Expedia did," said Irv DeGraw, research director at WorldFinancNet.com, referring to Microsoft Corp. <MSFT.O> affiliate Expedia, which debuted Tuesday and racked up a 282 percent gain.
The online travel market is becoming increasingly crowded, but it comprises the biggest Internet sales category.
"The firm is on the leading edge of European e-commerce. Europe is regarded as a few years behind the U.S. and is expected to be the next hot growth area, but barriers are low and the firm faces competition from traditional and larger Internet sites," DeGraw added.
The company, which serves the leisure and small business segments of Europe's travel market, offers travel products and services online including negotiated discount airfares and hotel and car rental bookings. It posted $5.7 million in revenue during the first six months of 1999 and $2.2 million in net losses.
Separately, Edison Schools Inc.<EDSN.O> struggled to stay above its $18 offer price, which was below its downwardly, revised expected price range. It had originally expected the IPO to price in a range of $23-25.
Its shares were up 3/64 at 18-3/64 on the Nasdaq.
The largest private operator of public schools for kindergarten through 12th grade raised $122.4 million through the offering of 6.8 million shares.
"The sector is consistently getting lousy valuations and it is in an extremely controversial area and is mixing business with politics. There's far too much risk," DeGraw said. "While it may be a good company long-term, I don't need that kind of risk, especially when we have so many other alternatives." |
