Olivia's muscular debut gets physical on the ASX
By Katherine Jimenez
OLIVIA Newton Johns Koala Blue label made a spectacular debut on the Australian Stock Exchange yesterday, with shares in parent company Signature Brands souring 200 per cent in buoyant stock market conditions.
The success of the Signature float was instarit, with the stock opening at a 10e premium to its 20c issue price. The stock gained momentum through the day, eventually closing at 60c for a market capitalisation of $15.9 million.
It benefited from a strong day on the stock market, with oversold resource stocks rebounding as investors were spurred by some positive news from the US over the weekend.
The benchmark S&P/ASX 200 index closed 13.6 points higher at 3302.4. while the all ordinaries index gained 14.4 points to 3312.5.
Last Friday in New York, stocks ended higher following solid results from leading companies including General Electric, which lifted investors hopes for robust results in coming weeks.
The Nasdaq composite index climbed 31.38 points to 2140.5, its highest level since July 2001, while the S&P 500 rose 7.78 points to 1139.8, its highest close since early April 1, 2002, The Dow Jones industrial average lifted 46.66 points to 10.600.51. its highest peak since March 19, 2002.
BHP Billiton put on 30e to $11.69, Rio Tinto firmed 88c to $36.82 and WMC Resources strengthened 20c to $5.28.
Signature executive chairman and co-founder Ian Duffell said investors had given their approval to the company, which also owns retail brands such as swimwear label Brian Rochford.
“We’re very pleased with the success of Signatures’s debut on the ASX, he said. “With plans already in place to expand our brands, we look forward to even better things in the future and maximising shareholder value.”
Koala Blue was originally an apparel retail company co-founded by Ms Newton-John and Pat Farrar in 1983. It collapsed nearly 10 years later under financial pressure and was bought in 2001 by Signature, which relaunched it as a wine company the following year.
Management says it sees upside in similarly undervalued brands and wants to buy more brands.
With AAP