The company had originally intended to float last month with shares hoped to sell at the much higher rate of E15. However, that attempt was abandoned amid criticisms that it had been too lavish in its expenditure, which included the cost of funding a staff ski trip.
When the new date for floatation was set Peter Jaco, the UK managing director, commented that, “the reason we have come back to the market so soon is the absolute level of interest in us from the investment community... We have set the price at a very realistic level.”
Despite this optimism it appears that the company has failed to attain the level of interest it had hoped for in Germany and Sweden where its shares are being offered. This was shown by the low level of bidding from private investors yesterday which only reached E5.50.
The experience of LetsBuyIt.com can be partially attributed to a general air of caution in internet company investments in recent months.