Domain name registry Melbourne IT, set to list on the ASX at 11:30am tomorrow, has admitted it expects its profits to exceed its prospectus forecast.
The latest results from the successful Melbourne University venture show the company had 19,600 new registrations in November this year, in contrast to an average forecast of 12,000 in its prospectus.
Melbourne IT, the largest company ever to come out of an Australian university, also said it expected registrations would rise further to reach 20,000 this month.
As a result, the company said it expected earnings before interest and tax (EBIT) for the year ending December 31, 1999 would exceed the prospectus forecast of $670,000.
However, company directors also said they believed increased competition from other domain name registries would produce "downward pressure" on registration prices throughout the forecast period and beyond.
Melbourne IT's initial public offering saw 42.5 million shares issued at $2.20.
The company expects to achieve a market capitalisation of $110 million when 85 per cent of the company lists tomorrow.