The number of dot com companies floating onto the Australian Stock Exchange will almost halve in the current financial year, according to a survey by KPMG.
The 1999-2000 capital markets survey by KPMG Corporate Finance listed 54 Internet based business listings on the sharemarket in 1999-00, raising a total of $900 million; compared with seven dot com floats in 1998-99, raising $250 million.
Survey forecasts for 2000-01cite a near halving in this number to 30. The amount this sector will raise from investors is also expected to decline sharply, from $900 million in 1999-2000 to $500 million in the current year.
KPMG suggest that investor sentiment has swung against this sector following disappointing fourth quarter results for 1999-00.
More than half of the new floats (57 per cent) listed on the sharemarket in 1999-00 were trading below their issue price at 30 June.
And on average share price performance for all Internet floats had slumped to 20.9 per cent at this time.