Dixons has today set the price of shares in internet service provider (ISP) Freeserve (see Dixons To Float One Fifth Of Freeserve) at between 130p and 150p. This values the hugely successful free Net access service at between £1.31 billion and £1.51 billion, significantly below some forecasts. Dixons has floated 18.25% of Freeserve and trading in the shares will begin on 2 August; the final offer price for the shares will be announced at the end of the month.
Whilst Freeserve has attracted well over a million users since its launch in September last year (see Dixons Claims Record Breaking Growth For Freeserve), the venture is still a loss-making business. This has led some analysts to question the group’s actual value which is seen to lie in the potential of ecommerce and online advertising.
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