PR shares frenzy bodes well for future flotations

The PR industry will enter the new millennium with increased status and confidence following the overwhelming success this week of Text 100’s stock market listing.

The PR industry will enter the new millennium with increased status

and confidence following the overwhelming success this week of Text

100’s stock market listing.



Text saw its share price rocket from 170p to 310p at the end of the

first day, to over 500p on Wednesday. The City’s embrace of the group is

being described by analysts as a defining moment in the PR industry’s

development.



Alan MacKenzie, CEO of corporate financier ARM, which brought Text to

market, said: ’City sentiment about PR agencies have definitely changed.

The share price that Text has achieved is amazing.’



Text 100’s finance director David Dewhurst said: ’The offer was nine

times over-subscribed, and this seems to have created a slight

frenzy.’



Previous public listings by PR agencies have not been so successful.



In 1998 Shandwick was sold to a larger group after facing City pressure

to change its management and seeing its share price fall to 45p; Bell

Pottinger parent Chime Communications’ share price was 54p before news

broke of its diversification to acquire ad agency HHCL in 1997. Incepta,

which owns Citigate Dewe Rogerson, is currently trading at 81p.



Text now has 25 per cent of its equity on the LSE, with the Monday

closing share price giving the group a valuation of pounds 76.65

million.



Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Latest Articles

Max Clifford trial jury finishes sixth day of deliberations

Max Clifford trial jury finishes sixth day of deliberations

The jury in the trial of celebrity publicist Max Clifford on 11 charges of indecent assault has been sent home and will reconvene tomorrow morning for a seventh day of deliberations.

Analysis: Fishburn chiefs keep eyes on future despite mounting departures

Analysis: Fishburn chiefs keep eyes on future despite mounting departures

Fishburn's management have defended their reinvention of the 23-year-old agency amid industry mutterings, fed by a series of director-level departures, about the direction in which it is going.

Hit or Miss? EasyJet backs Shakespeare Day campaign with world record attempt

Hit or Miss? EasyJet backs Shakespeare Day campaign with world record attempt

EasyJet aimed to break the world record for the highest ever theatrical performance for Shakespeare's 450th birthday yesterday with the Reduced Shakespeare Company performing on a flight from Gatwick to Verona.

Top PRs to gather in Barcelona for inaugural PRWeek Global Congress

Top PRs to gather in Barcelona for inaugural PRWeek Global Congress

Senior executives from IBM, Nestlé, Vedanta, GE, Cargill, Philips and Allianz will be among the speakers at PRWeek's first Global Congress.