Comet soars on first day of trading

Shares in local telecommunications company Comet closed at 76 cents after its first day of trading on the ASX, just under double its issue price.

Kingsley Mundey, Comet's chairman, said he had deliberately undervalued the company for its release on the ASX to maximise the margin of shareholder profit.

"We need people to feel good about us," Mundey said, discussing the necessity of shareholder trust for future dealings in the stock market.

"I am very pleased with our debut... because it demonstrates a lot of confidence in our company and its future," he said.

Mundey said future growth opportunities included "the rollout of digital television".

On Monday morning, 12.5 million shares in Comet Satellite and Cable were floated, two weeks ahead of schedule due to an "overwhelming response from applicants".

Comet's market capitalisation was around $9.5 million based on its closing price yesterday.

During Comet's first day's trading, the share price dipped to a low of 66 cents, recovering to 77 cents just after midday.