|
Freeserve Shares Fall Below Flotation Price
Shares in Freeserve, the country’s leading internet service provider, have tumbled to a record low; prices fell below their flotation price yesterday for the first time. Shares dived 13% to 135p – 15p lower than the issue price set by Freeserve’s owner, electronic retail giant Dixons.
The fall wiped £140 million off the free ISP’s market value of £1.5 billion, set at flotation on 26 July this year (see Huge Scramble For Shares In Freeserve). After a big investor sold stock in the company, messages of unease ran throughout the whole sector.
Fierce competition is believed to be rocking the growing market in free internet service providers. Copycat services include BT Click, VirginNet and LineOne.