eDreams Odigeo shares try to escape post-IPO nightmare
Sep 01, 2014
While eDreams Odigeo prefers to describe itself as the world’s largest online travel company in the flight sector, many investors think of it instead as Europe’s worst-performing IPO of 2014.
The Spanish company has seen its share prices fall 60% since its flotation, from 10.25 euro a share to 3.14 euro a share at the close of markets today.
Last week's quarterly conference call - a much-delayed report for earnings closed through June - failed to instill confidence in investors. While the company reported a profit of 3.1 million euro, that was a net income loss of 66% compared to 9.1 million euro in the same period of the previous year.
The IPO troubles are not unique to eDreams Odigeo. BravoFly Rumbo - a Swiss online travel agency - has seen share prices fall since its IPO this year. And the easyHotel IPO also only fetched about half its expected amount.
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