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.
