Wotif.com Gains a Massive 66% after the First Day’s Trade on ASX

Submitted by Marco on 4 June, 2006 - 15:47

Wotif.com is a successful "last minute" online accommodation website that listed on the Australian Stock Exchange (ASX) last Friday opening strongly at $3.06, up $1.06 compared to the $2 issue price from the $172 million initial public offer (IPO). The share price closed the first days' trade at $3.32 - 66 per cent above the IPO price with almost 39 million shares traded. With the share price soaring, the market capitalization is now at $674 million. Also note that the original shareholders still hold 58 per cent of the company.

The CEO, Graeme Wood has had more than 30 years of experience in the business before starting Wotif in 2000. The newly floated business now has an annual revenue of $360 million with a reach of 35 countries with 130 staff. The business of Wotif is simply to allow hotels, motels, bed and breakfasts, and any other form of accommodation to list on its website for free with Wotif receiving 10 per cent of the cost of the accommodation as commission. The plan is to keep growing the the business in the Australian and New Zealand markets. Mr Wood notes that, "Currently there's less than 10 per cent of all accommodation actually booked online and [we also plan to] find the less mature markets overseas where we stand a good chance to find the same kind of market dominance … as we have done here. There's no barrier to a lot of growth if we get in there and do things cleverly and keep on working hard."
. The share price closed the first days' trade at $3.32 - 66 per cent above the IPO price with almost 39 million shares traded. With the share price soaring, the market capitalization is now at $674 million. Also note that the original shareholders still hold 58 per cent of the company.

The CEO, Graeme Wood has had more than 30 years of experience in the business before starting Wotif in 2000. The newly floated business now has an annual revenue of $360 million with a reach of 35 countries with 130 staff. The business of Wotif is simply to allow hotels, motels, bed and breakfasts, and any other form of accommodation to list on its website for free with Wotif receiving 10 per cent of the cost of the accommodation as commission. The plan is to keep growing the the business in the Australian and New Zealand markets. Mr Wood notes that, "Currently there's less than 10 per cent of all accommodation actually booked online and [we also plan to] find the less mature markets overseas where we stand a good chance to find the same kind of market dominance … as we have done here. There's no barrier to a lot of growth if we get in there and do things cleverly and keep on working hard." Wotif.com is listed on the Australian Stock Exchange under stock code WTF. Check your charts!

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