LookSmart Has Profitable First Day on Nasdaq

Computergram International, August 24, 1999

Australian-owned internet directory company LookSmart has had a highly-successful listing on the Nasdaq with its shares increasing 44% on their first trading day, valuing the company at $1.46bn. Just two years ago LookSmart, which was founded in Melbourne, Australia, and since emigrated to the US, was valued at only $10m, but its two founders stakes are now worth $133m each. Other major shareholders which saw a large increase in the value of their investment, include Macquarie Bank, venture capital firm Australian Mezzanine Investments and Conspress Trading. They are all Australian companies.

Conceived as a global internet service from the start, LookSmart was forced to seek growth outside Australia and moved to San Francisco in July 1997, though it maintains a large staff in Melbourne and a management office in Sydney. Its next step could be a listing on the Australian Stock Exchange as it favors a joint listing in Australia to ease trading by its Australian employees and investors.