Freelancer more than triples first day listing expectations

Online outsourcing website Freelancer.com has exceeded its own expectations, closing at more than three times its initial share price on its first day on the Australian Stock Exchange.

Upon listing, the company's shares soared up to a high of AU$2.60 each, before later in the day, they dipped to about AU$1.40, heading towards AU$1.80 towards close, but again dipping back to AU$1.60.

30 million shares were put out to market at AU$0.50, and 5.1 million were offered to its employees at the same price.

Freelancer was rumoured to have turned down a US$400 million buyout deal from Japanese competitor Recruit Co weeks prior to its announcement to list on the ASX.

Although listing with a market cap of AU$218 million for the 436 million shares placed on issue, with a share price of AU$1.60, it should now be valued at about AU$698 million.

It currently has a membership base of over 9 million users who cumulatively have posted projects worth more than US$1.2 billion. The company's founder and CEO Matt Barrie stated in Freelancer.com's prospectus that growth for 2013 is predicted to be about the 73 percent mark. Listing on the ASX will accelerate this growth, the prospectus read.

"The company plans to continue reinvesting strategically to achieve growth, which may result in a period of minimal operating profits. We do not expect to pay any dividends in the near future. After successful completion of the offer, Freelancer will have no net debt and is expected to have sufficient cash balances to achieve its forecasts, to fund current growth plans and achieve its business objectives."