Fabulous Freeserve

By DAILY MAIL REPORTER
Updated:

 

Freeserve looks set for a storming debut. Its grey market price at the bookmakers rose 18p to 213p on hopes of a scramble for the shares by institutions. The issue will be priced at 150p, guaranteeing massive gains when dealing starts on Monday.

Freeserve chief executive John Pluthero refused to confirm reports institutions bid for 10-times the shares on offer. With Dixons keeping 80%, the issue has a scarcity value.

Bookmaker City Index reported no interest in betting on the price of eXchange Holdings, whose price is 'expected to be between 170p and 207p'. But Index quotes 245p to 255p; not bad after bloodcurdling competition threats from Misys. eXchange, Misys and Freeserve all target the insurance market. The winner may be the one with the biggest advertising budget. This is the warning from Paris-based Integra, which has just expanded into the UK.

It hosts web sites for big retailers such as Printemps. Only five out of its 50 sites make money. On average, each makes just one sale a day. Advertising must be three-times the cost of the website, says Integra boss Philippe Guglielmetti.

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