Mitula shares lift on ASX debut

Shares in "vertical search" website operator Mitula rise 20 per cent in the first two minutes of trading.

"Vertical search" website operator Mitula has started trading well - up 20 per cent within minutes.

Mitula shares opened at 85 cents and climbed as high as 95 cents before closing at 80 cents, five cents above their issue price.

The company raised $26.4 million from the share offer, which was oversubscribed by three times.

Chief executive Gonzalo del Pozo said the successful listing meant the company could operate with greater flexibility, grow rapidly, and pursue acquisitions.

"Through our successful IPO (initial public offer), we now have a strong foundation to accelerate organic and acquisitive growth," Mr del Pozo said on Wednesday.

"It will enable us to strengthen and improve our current offerings, as well as accelerate the rollout of new product and technology innovations."

Users of Mitula's websites can search for real estate, automotive, employment, and holiday rental classifieds - each a "vertical" - from multiple advertisers through a single search query.

Mitula has 51 websites in 38 countries, in 14 languages.

In April 2015, the websites received 51 million visits and featured 234 million aggregated classifieds listings from about 13,000 advertisers.

The company's two main brands are Mitula and Nestoria.

Mitula generates revenue through two main sources: "click outs" and Google AdSense advertisements.

A "click out" occurs when a user clicks on a listing displayed on a website and is redirected to another website where the listing is hosted.

Mitula also generates revenue when a user clicks on a Google AdSense advertisement appearing on the websites.

The ads are managed by Google and are targeted to website users, based on the website's content and the user's search query.


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Source: AAP


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