European e-business solutions consultancy Syzygy has floated on Frankfurt’s Neuer Markt (DW 15 September). The flotation raised more than 62m Euros (£37m). Syzygy priced its initial public offering at 20 Euros per share, and the sale was more than 15 times over-subscribed.
According to Syzygy communications manager Charlie Pownall, the successful float has bucked the current cynical attitude towards digital companies in financial markets.
‘Digital media services in general have had a bad run recently, but Syzygy’s float looks extremely healthy,’ he says.
Chris Robson, Syzygy chief executive, adds: ‘Our sustained profitability and potential scalability explain investor appetite for this offering.
‘We are seeing a shift from indiscriminate buying of all e-business stocks towards a more considered approach to investing,’ he adds.
Following the launch, 50 per cent of Syzygy’s shares were placed in Germany, with the other half placed internationally. The float represents 29.6 per cent of the consultancy’s total capital.
Poor-performing initial public offerings have dogged the Neuer Markt recently, according to market experts. Around half the 115 new issues brought to the market between January and October of this year have since fallen below their original offer price.