Online accommodation website Wotif.com has made a very strong debut on the Australian Stock Exchange.
Shares in the Brisbane-based company opened at $3.06, up $1.06 on its initial public offer (IPO) price of $2.00, which was set at the top of its target range.
Wotif raised $172 million from the IPO of 85.984 million shares and, based on the final issue price, will have a total market capitalisation of $406.4 million, with Wotif shares trading $1.10, or 55 per cent, higher at $3.10.
Launched in 2000, the online booking service allows hotels, motels, bed and breakfasts and any other form of accommodation to list on its website for free, but Wotif gets 10% of the cost of the accommodation it sells in 35 countries, including Cambodia, Vietnam and Myanmar.
Wotif’s prospectus forecasts a net profit of $15.7 million and revenue of $45.3 million for the year to June 30, 2006.
The company has forecast earnings to rise to $19.1 million on revenues of $55.8 million in 2006/07.
Report by The Mole
