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Australian telco amaysim shares debut at slight discount

Published 15/07/2015, 04:06 pm
© Reuters.  Australian telco amaysim shares debut at slight discount

SYDNEY, July 15 (Reuters) - Shares in mobile phone services provider amaysim Australia Ltd AYS.AX debuted at a slight discount to their issue price on Wednesday, underscoring the lack of appetite for IPOs as China's recent stock market turmoil stirred jitters in the local bourse.

Shares in amaysim, which sells access to Singapore Telecommunications's Optus network without locking customers into contracts, traded at A$1.78, below its issue price of A$1.80, while the broader market was up 0.8 percent. ID:L3N0Z91IU

The company had raised A$207 million ($153.74 million) through its IPO, which coincided with market volatility as China's stock exchanges experience a seismic correction and Greece battled to reach a debt bailout agreement.

Australia has also witnessed a slowdown in IPOs this year after a record 2014, as a slump in commodities prices and lacklustre performance by some listings cooled investor enthusiasm.

The total raised by Australian IPOs fell by two thirds in the first half of 2015, compared to the same year ago period, according to Thomson Reuters data, and in the past month, Australia and New Zealand saw some five listings worth more than A$2.4 billion pulled, Reuters calculations showed.

amaysim sold a 65.3 percent stake in the IPO, while founders, existing investors and employee shareholders kept the rest. The company did not reported a profit for the past three years, but expects a net profit of A$20.4 million in the 2015 financial year.

($1 = 1.3464 Australian dollars)

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