Brothel is Australia's steamiest stock
By Anna Fifield in Sydney
Published: May 1 2003 20:29 | Last Updated: May 1 2003 20:29
`The oldest profession in the world became the newest - and hottest - stock in Australia on Thursday, when shares in The Daily Planet, a Melbourne brothel, more than doubled in their first day of trading.
Although the company float raised only A$3.75m ($2.4m) - less than half the amount expected - as institutions stayed clear, enthusiasm among private investors took the shares from 50 cents to A$1.09 to give the business a market capitalisation of A$36.5m.
Andrew Harris, chief executive, aims to create a A$500m empire, with global franchises. Initially he hopes to expand into Perth, Brisbane and Sydney.
The launch was helped by the promotional efforts of Heidi Fleiss, the former Hollywood madam. "Obviously the price is going to go up - it's sex, and everyone knows sex is a smart investment," said Ms Fleiss, hired by Daily Planet as its "international ambassador".
The Daily Planet describes itself as a five-star hotel that allows sexual services. It has listed only the property part of the business to get around the Prostitution Control Act.
It tried to float as a brothel nine years ago but laws in the state of Victoria subjected all investors in sex industry businesses to police checks.
The Victorian building boasts "state-of-the-art facilities" and the company makes its money by charging A$115 an hour. It takes no money from its "independent contractors", whom the guests pay directly, and has an annual turnover of A$6m-A$9m. |
