Re-floated Eircom shares to sell at mid-to-low price

18 Mar 2004

Various reports suggest that Eircom’s re-flotation on the Dublin and London stock exchanges tomorrow will see its shares sell towards the middle-to-lower tier of prices advertised.

Eircom’s management have spent the last two weeks engaged in road shows and investor negotiations aimed at pushing pricing momentum upwards. According to Reuters, investors are willing to pay between €1.53 and €1.61 per share.

Brokers Citigroup, Goldman Sachs, Morgan Stanley and Deutsche Bank are marketing Eircom’s IPO.

In the grey market, Eircom was trading at €1.50 to €1.60, according to Cantor Index.

The final price of shares in the €830m IPO that will see the Valentia consortium sell nearly its entire stake will be revealed tomorrow with share dealings beginning on the same day in Dublin and London. It is understood that ESOT, the employees’ trust that owns 30pc of Eircom, will buy a significant number of shares to maintain its holding after the offering on the markets.

By John Kennedy