Internet infrastructure service provider (IISP), VivaNET, listed at 19 cents per share on the Australian Stock Exchange last week, slightly below its issue price of 20 cents.
It reached its highest at 20 cents, and lowest at 16 cents before closing at 18.5 cents.
The company's 25 million share issue was oversubscribed on the day the offer was opened to the public, said its underwriter, Intersuisse.
Incorporated in March 1999, VivaNET claims to be the first company in Australia to provide an Internet infrastructure network to ISPs and companies offering Internet and intranet access services.
The company says it has more than 80 wholesale customers and network coverage in 30 cities throughout Australia.
Cardy Chung, CEO of VivaNET, said the company's first day performance on the ASX was due to current market conditions and performance of the NASDAQ the week before it listed. "It is a performance in line with the market, rather than in line with the value of VivaNET's shares," said Chung.
Chung also said VivaNET needs to better inform the market of the value of the company and the sector in which it operates.
In comparison, "the relative valuation of IISPs in the US, such as UUNet and PSINet, is very high", Chung said.
Capital raised from the IPO will be used to accelerate sales and marketing development, and the development of new services such as next-generation broadband Internet services, a toll-bypass service for ISPs and call centres, a 24-hour customer helpdesk, Web hosting, content delivery, and application delivery.