Tech floats get sinking feeling

By TREVOR WEBSTER
Updated:

 

The bloodbath in hi-tech stocks is frightening off professional stags of new issues and leaving many small punters and issuing houses with burnt fingers.

Most recent London tech launches have plunged to heavy discounts and issuing houses have started to slash their float prices.

This week saw NetStore, the software rental site, trim its valuation from £200m to £133m. OneClick HR, Lord Sheppard's personnel software outfit, extended its marketing period as its expected value halved to £25m. ServicePower, a software company, was downgraded from £75m to £59m.

Eyretel, making call-centre software, lowered its quotation sights from 240p to 150p, valuing it at £217m.

Even so, Eyretel plunged to a 34 1/2p discount in initial dealings yesterday.

It has plenty of company. Lastminute.com, the online travel site founded by Brent Hoberman and Martha Lane Fox, has slumped from 380p to 157p in a month. RMR is off in its first week, Teamtalk.com is down from 145p to 52 1/2p.

Two newly floated sponsoring brokers, Peel Hunt and Beeson Gregory, have suffered with their clients. They are now at discounts of around 25p on their recent float levels.

Bookham, the fibre-optic component group, suggests investors will still chase what they see as top quality. Its shares have doubled in their first week, though back from a high of £33.50.

The word from issuing houses is they are showing dodgier float hopefuls the door and may delay others.

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